Upheld: claim declined due to incorrect policy cover selection complaint against Watford Insurance Company Europe Limited

Decision detail

Summary

Miss F purchased motor insurance with Watford selecting 'Social, Domestic and Pleasure' cover only in September 2024. In September 2025, she had a collision while returning home from university and Watford declined her claim on the basis that commuting to a place of study was excluded. The ombudsman found that while Miss F made a careless mistake in selecting the wrong cover and not checking her policy documents, CIDRA did not apply as she was asked to select her cover rather than answer questions. Since Watford confirmed it would have covered commuting at no additional premium and Miss F added the correct cover at renewal, the ombudsman upheld the complaint and required Watford to deal with the claim as though commuting cover was in place, without awarding compensation due to Miss F's contributory fault.

The Ombudsman's reasoning

Although the Consumer Insurance (Disclosure and Representations) Act 2012 (CIDRA) does not apply because Miss F was asked to select her cover rather than being asked questions about her use, a similar fair approach is appropriate. Miss F made a careless mistake in not selecting the correct cover or checking her policy documents. However, since Watford would have covered commuting at no additional premium, and Miss F has admitted her mistake and added the correct cover at renewal, the fair outcome is to treat the claim as though commuting cover was in place. No compensation is awarded as Miss F bears responsibility for her own error in not checking her policy documents.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website