How Much Compensation for an Insurance Complaint?

  Cara2 22:17 19 Sep 2014

Anyone advise please with regard to an insurance complaint compensation amount?

I took out travel insurance with a well known insurance company which badly let me down.

Despite full medical disclosure under which the policy was agreed and issued, the company took a different stance when I had occasion to telephone with a query in which my medical situation was again discussed.

I revealed nothing new but the second agent took a different stance and all the medical endorsements were withdrawn. Basically, I had no cover for pre-existing conditions with only a day or so before travelling. I rattled off an email of complaint hours before I departed and during my holiday received an email offering me a refund of premium which left me thinking I and my husband had, potentially, no travel insurance. I felt very stressed and vulnerable.

Pursuing the matter, I have been offered again a refund of premium (around £20) and £20 Marks and Sparks vouchers (which they give willy nilly for taking out their insurance anyway). I have refused and they have asked me how much I consider to be a reasonable amount. I have no idea of what might be a reasonable amount?

Can anyone tell me where to start please?

  rdave13 23:02 19 Sep 2014

I would take advice from CAB to start with. This is a very serious matter and should be taken further. Check where your local Citizens Advice Bureau is located and discuss the issue there. Otherwise online link to find your local site, here.

  BillSers 08:53 20 Sep 2014

This may help too click here

  spuds 11:59 20 Sep 2014

From BillSers link "You can contact the Ombudsman Service initially for advice, but they can only act after you get a final response from the insurance company, or as soon as the eight weeks are up."

Perhaps worth mentioning that the final response might be referred to as a 'deadlock' in some communications. Basically it means the insurance company is not prepared to go any further. Still doesn't stop you from challenging their opinion though!.

  Forum Editor 19:28 20 Sep 2014

You need to clear about this.

If a premium was paid and the policy issued a contract existed between you and the insurer. The insurer may not declare the contract void unless it discovers something later which you did not disclose prior to contract.

If you made a full disclosure of any medical conditions when applying for cover, and if nothing subsequently came to light that was not disclosed the insurer is in breach if it cancels the policy. My advice is to go to arbitration - you should find details of the procedure in the policy's small print.

  bumpkin 21:25 20 Sep 2014

My advice is to go to arbitration

My advice is to not waste your time just be sure you get it right next time.

  tullie 21:37 20 Sep 2014

Maybe they did get it right,and the company is at fault?

  bumpkin 21:54 20 Sep 2014

tullie, so what does the op require compensation for when they have suffered no loss and were offered a full refund before travelling.

  bumpkin 22:13 20 Sep 2014

Cara2, you have been offered a reasonable amount. ie it has cost you nothing for the insurance or lack of it. What makes you think that they should compensate you, compensate for what?

  Forum Editor 22:59 20 Sep 2014


"..compensate for what?"

I can see you are missing the point. Cara2 had to travel without insurance, and in her words: "....during my holiday received an email offering me a refund of premium which left me thinking I and my husband had, potentially, no travel insurance. I felt very stressed and vulnerable."

  namtas 23:18 20 Sep 2014

I do not think that you should expect to get anything more than a goodwill gesture, I say that because any compensation offered is for losses of one sort or another. From what you have told us your material loss was nil but you obviously suffered stress as a result. The other fact is that you made a decision to travel when you did not have travel insurance, that was your decisions if not your original intention. It could be said that a option would have existed prior to travel to cancel the original Insurance take out another to cover everything and then counter claim on the original company for reimbursement. I would be wary of seeking legal address for this, and arbitration if available might be your best option

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