Why it pays to fight rejected claims
Argo St George, a corporate finance advisory firm and property fund manager, has joined a growing band of policyholders prepared to fight an insurer over a rejected claim.
Operators of the Mayfair-based business had a year-long wrangle with their insurance company over a theft claim for an £1,800 laptop. The computer had been left in the office over the weekend, but was missing on Monday morning.
“The theft claim was rejected on the basis that the laptop might have been taken by someone who was lawfully on the premises,” explains Daniel Geoghegan, a partner with Argo St George. “Contractors were in the building that weekend. But we were dismayed when the insurer cited a technicality to avoid paying.”
Jeffery Associates, Argo’s broker, took up the case and argued that there was no evidence to support the exclusion. But insurer NIG, a subsidiary of the Royal Bank of Scotland, would not budge.
“I was flabbergasted with how they dealt with the claim,” says Mike Jeffery of Jeffery Associates.
“Insurers can interpret exclusions as they see fit, but they also have an obligation to treat their customers fairly, which we didn’t believe they did.”
NIG says: “Taking into account the information given to us at the time, and the fact there had been no forced entry into the premises, it was concluded relevant policy conditions had not been met.”
Argo and Jeffery Associates took the dispute to the Financial Ombudsman Service, which found in their favour. NIG was directed to pay the £1,800 claim, albeit for accidental loss rather than theft.
No charges have been laid over the missing laptop.
According to the British Insurers Brokers’ Association, member firms are now having to fight harder to get claims paid for their clients because of stricter policy interpretations.
The Ombudsman believes some insurers are “taking a more legalistic approach” – but notes that consumers also less willing to accept a rejected complaint. The Association of British Insurers says “insurers should be offering fair and quick offers to all genuine claimants”.
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