Term Insurance Decision Reference 2023-0074

• Case Outcome: Rejected
• Subject Matter: Term Insurance
• Reference: 2023-0074
• Date: 28 March 2023
• Finantial Sector: Insurance
• Conducts Complained Of: Disagreement regarding Settlement amount offered,Mis-selling

Decision Ref:

2023-0074

Sector:

Insurance

Product / Service:

Term Insurance

Conduct(s) complained of:

Disagreement regarding Settlement amount offered

Mis-selling

Outcome:

Rejected

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint relates to a Mortgage Protection Policy (“the Policy”) incepted by the

Complainant and his late wife with the Provider in June 2013. The Policy was sold to the

Complainants by an intermediary. The Provider is the insurer.

The Complainant’s Case

The Complainant explains that his late wife’s and his “intention for taking out the Plan was

to cover the Mortgage should something occur”.

The Complainant sets out that, whilst the outstanding balance on their mortgage at Policy’s

inception was €133,755.61, the level of cover of the Policy was only €125,000. The

Complainant complains that the representative of the intermediary “did not request or ask

for confirmation of the exact level of [their] Mortgage in relation to which [they] were taking

out the [Policy]”.

The Complainant sets out that, when his wife passed away in [date redacted] 2016, the level

of cover paid out by the Provider was insufficient to discharge the mortgage loan in full. The

Complainant submits that “discharge[ing] the Mortgage in full […] was obviously [their]

intention for taking out the [Policy and that] [a]s a result of the failure, negligence and breach

of duty of [the intermediary] and/or [the Provider]” the Complainant has suffered financial

loss.