Not upheld: cancellation handling and failure to process cancellation request complaint against UK Insurance Limited

Decision detail

Summary

Mrs T complained that UKI failed to process her cancellation request for a home buildings insurance policy. Mrs T claimed she called to cancel within the 14-day cooling-off period but was told no policy existed, despite having a policy number and having made a payment. The ombudsman reviewed all available call recordings and found no clear evidence that Mrs T successfully completed a cancellation instruction with UKI. While one recording showed Mrs T stating she wanted to cancel via an automated service, the recording ended before confirmation was obtained and UKI found no evidence the full cancellation process was completed. The ombudsman upheld UKI's decision to backdate the cancellation to inception and provide a full refund, finding this to be fair and reasonable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman examined all available call recordings and found no clear evidence that Mrs T successfully completed a cancellation instruction with UKI prior to the first payment being collected. While Mrs T stated she wanted to cancel during one automated call, the recording ended before confirmation of cancellation was obtained, and UKI found no evidence she completed the full cancellation process. The ombudsman concluded that UKI acted fairly by backdating the cancellation to inception and providing a full refund once Mrs T complained. The ombudsman also found insufficient evidence to support Mrs T's claim of spending 15 hours on calls, noting that the cancellation and refund were enacted swiftly once the complaint was made.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website