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FOS issues Ombudsman News 162

Jul 1, 2021 | FOS

Link(s):https://www.financial-ombudsman.org.uk/news-events/ombudsman-news-162

Context

FOS has published issue 162 of Ombudsman News, which includes sector specific commentary and insights including its approach to complaints about wedding insurance and business interruption insurance.

Key points to note

Wedding and special events insurance complaints:

  • FOS has seen a steep increase driven by the Covid-19 pandemic – and has upheld a high proportion in the consumers’ favour.
  • Many complaints relate to the type or level of cover that exists where someone has had to cancel or rearrange their wedding.
  • In essence, the complaints could be categorised as arising out of Covid-19, as being about the sale or as being about a claim

Business Interruption Insurance complaints

  • The impact of Covid-19 on businesses has been far-reaching – as government guidance and restrictions have meant many businesses have been interrupted or they’ve had to close their premises.
  • FOS has published information about the types of complaints it has seen, how it can help and some case studies that illustrate and outline its approach.
  • Typically, the types of complaints FOS sees:
  • There was no business interruption term in the policy
  • The policy only provided cover where the interruption was caused by a disease on a list of specified diseases – and this didn’t include Covid-19
  • The policy only provided cover where the interruption was caused by a case of Covid-19 at the premises and there was insufficient evidence to demonstrate that was the case
  • The policy only provided cover in the context of a public emergency in the local area which restricted access to the premises

Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Schemes (BBLS) complaints

  • The CBILS and BBLS were established to help provide financial support to businesses in the context of the Covid-19 pandemic.
  • FOS has seen complaints from companies, sole traders, partnerships and charities.
  • In most cases, the complaint has been about how the loan application has been handled by a financial business (a bank or lender), and in some cases about the application to open an account to make the loan application.
  • FOS has also received complaints about the length of time it’s taken for the application to be considered and for the funds to be made available, about funds being withdrawn by the lender or the account being suddenly restricted or closed.

Next actions

None – for information and awareness