The majority of complaints about wedding insurance claims with the Financial Ombudsman Service (FOS) have been confirmed according to the latest complaint data.
For the period between April 1, 2020 and March 31, 2021, the FOS saw a significant increase in the number of complaints about wedding insurance, and 94% of the complainants were upheld.
This is the highest rate in all other complaint categories and is particularly strong compared to the general approval rate of 31% in all categories.
Here which one? explains which complaints are handled successfully and what to do if you have a complaint against your wedding insurance.
Why did the FOS confirm so many complaints?
According to FOS, there has been a sharp spike in claims against wedding insurers over the 2020-21 period, with hundreds of people complaining about how their provider handled their claim.
In 94% of the cases, the FOS ruled in favor of the customer, saying: “Although it is correct that insurers take into account the insurance conditions and possible exclusions, we still expect insurers to find unprecedented situations, such as Covid-19, when making the decision whether to invoke an exclusion. ‘
In its own case study, the FOS said it was a couple who had planned to get married abroad, but the wedding venue canceled the booking as Covid-19 meant they had the staff or goods needed for the event could not procure.
However, when they used their wedding insurance, their provider informed them that the policy only covered “certain eventualities” and that the venue was unable to fund the wedding. The provider also said that while the policy covered outbreak cancellations, it did not cover cancellations related to government action.
The FOS ruled in the couple’s favor on the case, as it said the insurer’s terms were unclear and the cancellation was clearly caused by the Covid-19 outbreak – an outbreak that its policy covers. The vendor was asked to pay the claim plus 8% interest and provide additional compensation for the additional annoyance it caused.
What does this mean for my wedding insurance complaint?
The latest complaint dates may be good news for those who have had an unsatisfactory outcome with their wedding insurance, as the numbers suggest that if you escalate your complaint, the FOS could rule in your favor.
However, this is not guaranteed. When examining complaints about insurance companies, the FOS investigates the facts of both the customer and the insurance provider before deciding what is “fair and reasonable”.
It also looks at the wording of the policy, all relevant laws and regulations, codes of conduct and industry best practices, and relevant evidence such as medical reports, photos and applications.
After analyzing all of this, the FOS will determine if it believes the company treated you fairly and why. If they feel that you have not been treated fairly, they will also explain what needs to be done to correct the problem.
How and when can you complain to the FOS?
Before you complain to the FOS, you must first complain to the company you are dissatisfied with – in this case, your wedding insurance company. You must have explained the problem and how you plan to fix it.
If you’re not happy with their answer or they don’t get back to you, you can contact the FOS. You must contact you within six months of receiving the company’s definitive response to your complaint with your personal information, insurance details and reports of the incidents.
The FOS will contact the company concerned and assess what has happened before making an initial decision.
If you are unhappy with the FOS’s decision, you can ask one of its ombudsmen for a final decision. If you are still dissatisfied with this, you can take your complaint case to court.
Note that the process is not short. It currently takes about five months for insurance claims to be assigned to a complaints handler for review, according to the FOS, but it could take longer in more complex cases.
How has Covid-19 affected wedding insurance?
Several of the largest wedding insurers have stopped selling new wedding insurances – and have done so since the first Covid-19 lockdown began in March 2020.
We have monitored six of the largest wedding insurance providers in the past 15 months, and currently only two are offering new policies – Event Insurance and Wedinsure. Wedinsure changed all guidelines as of October 23, 2020 to explicitly exclude claims that arise directly or indirectly from a pandemic or epidemic, including Covid-19.
This leaves very little choice and possibly no coverage for those who don’t have a pre-pandemic policy should the coronavirus cause their wedding to be postponed or canceled.
In addition, there have been cases when some wedding insurers did not obey the rules. In August 2020, which one? UK General Insurance – which sold policies through Debenhams, WeddingPlan and Dreamsaver – reported to the Financial Conduct Authority (FCA) for unfairly denying wedding claims.
CMA Guide to Wedding Companies
In many cases, wedding insurances have encouraged couples to make their own arrangements with the venue and other providers to change dates and arrangements without having to cancel and file a claim. However, this did not always go smoothly.
In May 2020, which one? spoke to 25 couples who were struggling to get refunds or suitable new dates when Covid-19 slipped from their wedding plans.
In September 2020, the Competition and Market Authority (CMA) warned wedding venues about unfair treatment of couples whose weddings were affected by the coronavirus. It also took action against the Bijou Weddings Group, which it believed had not reimbursed customers according to its guidelines.
The CMA guidelines stated that all weddings that had to be canceled due to a national lockdown would have had their contracts “frustrated” and therefore eligible for a refund – including any “non-refundable” down payments and prepayments that are no longer required to make further payments.
For weddings that can go ahead but not as planned, the CMA policy says you may be eligible for a refund if there were significant changes to be made and were part of the terms of the contract. This can be the case, for example, if your contract specifies a certain number of guests who had to be reduced significantly due to distance regulations.
Note that this guide only applies to businesses, not insurance providers.
If you have a complaint specifically with your wedding insurance and were not able to resolve it directly, you can complain to the FOS.
