What can I do if my insurance claim is declined because of non-disclosure?
If your insurance provider acts unreasonably in declining a claim on the grounds of non-disclosure, your first step should be to make a formal complaint to the company. If they decline your complaint, you can refer your complaint to the independent Financial Ombudsman Service (FOS).
Referrals to the FOS must be made within six months of the date the insurance provider sends you its final decision letter regarding your complaint.
The FOS was set up by Government and will carefully consider whether the company was right to reject your complaint. Its services are free to use and any decisions it makes are legally binding on a company. So, for example, if the FOS finds in your favour regarding a vehicle insurance claim, it will instruct the insurance provider to pay your claim, and may also award you an extra payment for interest on the value of the claim.
The FOS may not uphold your complaint if it feels that you engaged in deliberate non-disclosure, or reckless non-disclosure where it’s extremely unlikely that you overlooked the relevant information.