Step-by-step
Understand the rejection reason
Get the insurer's rejection in writing with specific reasons. Check these against your policy terms.
Review your policy
Read your policy carefully. Check if the rejection reason is actually valid based on the terms.
Gather evidence
Collect all documents supporting your claim: receipts, photos, reports, medical evidence.
Make formal complaint
Use the insurer's internal complaints process first. They must respond within 8 weeks.
Escalate to Financial Ombudsman
If unsatisfied, complain to the Financial Ombudsman Service (free service).
Consider court as last resort
If FOS cannot help or you disagree with their decision, court is an option.
Challenging Rejected Insurance Claims
Insurance claims can be rejected for various reasons, some valid and some not. You have the right to challenge rejections and can use the Financial Ombudsman or courts.
Common scenarios:
- Valid claim rejected by insurer
- Unreasonably delayed insurance payout
- Policy cancellation disputes
- Coverage disagreements
Types of insurance:
- Travel insurance
- Gadget/contents insurance
- Pet insurance
- Car insurance (excluding personal injury)
- Home insurance
Evidence You Need
Essential evidence:
- Your insurance policy (full wording)
- Claim documentation submitted
- Rejection letter with reasons
- Supporting evidence for your claim
Helpful evidence:
- Premium payment records
- Any representations made when buying
- FCA guidance on similar issues
- Expert reports supporting your claim
Tips:
- Request the exact policy term they say you breached
- Ask for their claims file under data protection rights
- Note any verbal promises made by sales staff
What You Can Claim
Typical claim value: £50 - £10,000
You can claim:
- The insurance payout wrongly denied
- Interest on delayed payments
- Consequential losses from the delay
- Distress and inconvenience (FOS awards this, courts less so)
Financial Ombudsman:
The FOS can award up to £430,000 (most cases are much smaller). Their service is free and decisions are binding on the insurer.
Common Rejection Reasons
"Non-disclosure":
Claiming you did not disclose relevant information. Check if you were asked about it and answered honestly. Insurers can only reject for information that would have affected their decision.
"Policy exclusion":
Claiming your situation is excluded. Read the exclusion carefully - is it clear? Does it really apply to your situation? Ambiguous terms should be interpreted in your favour.
"Late notification":
You reported the claim too late. Check the policy timeframe and whether they have actually been prejudiced by the delay.
"Insufficient evidence":
Ask what evidence they need and provide it. If they are being unreasonable about evidence, this itself can be challenged.
Frequently asked questions
Should I go to the Ombudsman or court?
Try the Financial Ombudsman first - it is free and they are experienced with insurance disputes. Court should be a last resort if the Ombudsman cannot help or you disagree with their decision. For most insurance disputes, FOS is the better route.
How long does the Financial Ombudsman take?
Varies significantly - from a few weeks for straightforward cases to over a year for complex ones. You must give the insurer 8 weeks to respond to your complaint first before going to FOS.
Can the insurer cancel my policy after I claim?
Insurers can cancel policies but must follow proper procedures and give required notice. Cancellation solely because you made a valid claim may be challengeable. They cannot cancel retrospectively to avoid paying.
What if I was not told about an exclusion?
Insurers must make significant exclusions clear before you buy. If an exclusion was hidden or not clearly communicated, you may have grounds to challenge it. The FCA has rules about clear disclosure.
Can I claim for distress caused by wrongful rejection?
The Financial Ombudsman regularly awards compensation for distress and inconvenience caused by poor claims handling (typically £100-£500 for moderate cases). Courts are more reluctant to award this for contract disputes.
What if my premium went up after a rejected claim?
If your premium increased due to a claim you made but that was rejected, you can ask for the increase to be reversed. A rejected claim should not count against you in the same way as a paid claim.
This guide provides general information about UK small claims court procedures and is for educational purposes only. It does not constitute legal advice. CourtPilot is not a law firm and is not regulated by the Solicitors Regulation Authority. The law may have changed since this guide was last updated. For advice specific to your situation, please consult a qualified solicitor or seek help from Citizens Advice.