Not upheld: Home insurance claim disputes complaint against Great Lakes Insurance UK Limited

Decision detail

Summary

Mr and Mrs N complained about Great Lakes' administration of their travel insurance policy and handling of a cancellation claim. When Mr N declared a change to his prostate cancer condition in November 2024, broker V gave him unclear information that led him to believe his cover had been withdrawn, causing him to cancel his holiday and claim on the policy. Great Lakes initially declined the claim but later settled it in full along with £150 compensation after obtaining call recordings that confirmed the unclear information. The ombudsman found Great Lakes had already settled the complaint fairly, as it was reasonable to accept the cancellation claim given the confusion created by V and the policy terms allowing such claims, and the £150 compensation was proportionate for the initial decline and delays in handling.

The Ombudsman's reasoning

The ombudsman distinguished between Great Lakes' role as underwriter and V's role as broker/administrator. While V had given unclear information leading Mr N to believe cover was withdrawn, Great Lakes had not actually withdrawn cover. However, the ombudsman found it fair and reasonable for Great Lakes to accept the cancellation claim given the confusion V had created and the policy terms allowing cancellation claims when cover is withdrawn or additional premiums are required. The ombudsman acknowledged delays in claims handling but found most delay was attributable to V's delay in providing call recordings rather than Great Lakes' error. The £150 compensation was found to be fair and proportionate for the initial claim decline and delays.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website