Life Insurance  

Fos reconsiders complaint in light of fresh evidence

Fos reconsiders complaint in light of fresh evidence

Chase de Vere has been told to compensate a client for over-insuring her, after new evidence came to light.

Referred to as Ms C, the client complained Chase de Vere Independent Financial Advisers mis-sold her two income protection insurance policies.

When Ms C met with one of its advisers in 2006 she already held two income protection policies with an insurer, referred to in the decision only as ‘A’.

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The adviser recommended she take out a further two policies with insurer ‘B’.

In 2014, Ms C had another meeting with the adviser, who by now was working for a different business. They told Ms C to cancel the two policies with insurer B because she was over-insured and couldn’t benefit from them.

Ms C cancelled the policies and complained to Chase de Vere it had mis-sold them to her.

Initially the ombudsman’s adjudicator did not recommend the complaint be upheld.

But a couple of months later, MS C discovered information which showed Chase de Vere had based its calculations concerning her level of over-insurance on incorrect data. Her second policy with insurer A was for a higher amount than the firm had stated.

As a result, she believed it had underestimated the extent to which she had been over-insured.

In a final decision, ombudsman David Poley said Ms C’s evidence was “convincing”.

Chase de Vere must pay Ms C the difference between the amount she paid for that policy and the amount she would have paid for a policy worth £6,520 a year - £16,328 to £9,808 - with interest of 8 per cent a year being added to that sum.