Not upheld: Other regulated complaint complaint against Vitality Life Limited

Decision detail

Summary

Mr C complained to the FOS about Vitality Life Limited regarding his income protection policy. Following a successful serious illness claim in 2021, Mr C's life and serious illness cover were removed, leaving only the income protection policy. Mr C claimed he was not given a fair and informed opportunity to make a decision about the changed policy structure and requested a refund of premiums. The ombudsman did not uphold the complaint, finding that Mr C had the benefit of cover throughout the period, Vitality would have honored eligible claims, and Vitality's written notification was sufficient. The ombudsman also found that even with an informed choice, Mr C would not have been able to obtain new cover from Vitality based on his health circumstances at that time.

The Ombudsman's reasoning

The ombudsman found that Vitality had not treated Mr C unfairly. Although Mr C was unwell at the time and may not have fully understood that only income protection cover would remain, Vitality's written notification was sufficient. A refund of premiums was not fair because Mr C had the benefit of cover throughout the period and Vitality would have honored any eligible claims. The ombudsman was not persuaded that being given an informed choice would have made any difference, as Vitality's underwriting evidence showed they would not have offered Mr C a new policy at that time. No financial loss or impact from Vitality's actions was demonstrated.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website