Partially upheld: claim decline and underpayment; unreasonable delay in claim handling complaint against Red Sands Insurance Company (Europe) Limited

Decision detail

Summary

Miss W claimed on her travel insurance policy after her bag containing a phone and personal items was stolen while on holiday. Red Sands accepted the claim for personal possessions but declined the phone claim because Miss W did not notify her mobile network provider within 24 hours as required by the policy terms. The ombudsman partially upheld the complaint, finding the phone claim decline was fair but that Red Sands underpaid the personal possessions claim by £32.70 and caused unreasonable delays in handling. Red Sands was directed to pay the underpayment, interest, and £100 compensation for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman found that Red Sands acted fairly in declining the phone claim because the policy terms explicitly require notification to the mobile network provider within 24 hours and evidence of blacklisting. Although Miss W attempted to contact Red Sands on the day of theft, the email went to an incorrect address, so Red Sands could not be held responsible. When Red Sands later made the requirement clear, Miss W provided no evidence of contacting the network provider. However, the ombudsman found Red Sands acted unfairly by: (1) underpaying the personal possessions claim by £32.70 based on its own depreciation guidance; and (2) causing unreasonable delay in assessing the personal possessions claim over three months without justification, causing Miss W unnecessary trouble and frustration.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website