Not upheld: mis-selling of income protection insurance complaint against Quilter Mortgage Planning Limited

Decision detail

Summary

Mr H complained that Quilter Mortgage Planning Limited mis-sold him an income protection insurance policy sold in 2019 and replaced in 2022. Mr H made a claim on the policy in 2023 following illness, and received benefits until 2025 when the underwriter stopped payments, determining that his ITS and pension payments exceeded the maximum benefit entitlement. The ombudsman found that Quilter provided clear information about how other income would be considered at claim and that the policies were suitable for Mr H's needs. The ombudsman determined that the ITS was not foreseeable at the time of sale and that Mr H's decision to take early pension payments in 2025 led to the claim benefit being stopped, not any mis-selling by Quilter.

The Ombudsman's reasoning

The ombudsman found that Quilter provided clear, fair and not misleading information about the policies as required by regulatory rules for advised sales. The policies were suitable for Mr H's demands and needs based on the information available at the time of sale. The ombudsman noted that it was not foreseeable that Mr H would benefit from the ITS, and that it was Mr H's decision to take early pension payments in 2025 (earlier than his stated intended retirement age) which, combined with ITS payments, led to the claim benefit being stopped. The policy documentation clearly stated that other income would be considered at the point of claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website