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Mobile phone and gadget insurance

Last updated: 20 February 2023

On this page

  1. Types of complaint we see
  2. Handling a complaint like this
  3. What we look at
  4. Putting things right
  5. Case studies
  6. Business Support Hub
  7. Information for consumers

Customers buy insurance to cover risks to their mobile phone and other gadgets.

It can be very stressful for customers to lose or damage their mobile phone or gadget. If they come to us with a complaint about an insurance claim, we’ll listen to both sides of the story and deal with it fairly.

Types of complaint we see

Customers often complain to us that the:

  • policy was mis-sold;
  • policy wording was misleading;
  • insurer wrongly refused to pay the claim because it applied an exclusion or a limitation that shouldn’t have been applied;
  • insurance policy continued beyond the phone contract;
  • policy was automatically renewed;
  • replacement phone or gadget is refurbished and not a new one

Handling a complaint like this

When you receive a complaint, you should reply to your customer within the relevant time limits.

If a customer complains and you don’t respond within the time limits, or they disagree with your response, they can bring their complaint to us. We’ll check if it’s something we can deal with, and if it is, we’ll investigate.

We’ll expect you to be able to show us that you’ve investigated the complaint thoroughly and that you have reflected carefully on the circumstances.

Find out more about how to resolve a complaint.

What we look at

When we consider these complaints, we’ll look at all the facts to decide what’s fair and reasonable in each case. We’ll look at the policy’s wording and any other relevant documents, like the policy summary.

  • Most policies contain exclusions and limitations. If we think any of these are significant or unusual, we’ll look at what you told the customer at the time they took out the policy.

    We’ll also consider things like:

    • did you get in touch with the customer to let them know the policy would renew automatically;
    • what the policy says about taking care of the insured device – and whether this was made clear to the customer at the point of sale;
    • what the policy says about replacement phones or gadgets. Most policies will provide refurbished replacements and not a new phone or gadget but was this made clear in the policy terms?

  • If the complaint is about a mis-sale, we’ll look at who sold the policy. We’ll also look at whether or not you provided advice to the customer when they bought it.

    If you given advice, you have a responsibility to make sure the policy is right for the customer.

    If the customer bought the policy without advice, they should have been given enough information to decide if the policy was right for them. At the point of sale, you must provide information that’s:

    • clear
    • fair
    • not misleading

  • We always look at policy terms and conditions. You must handle claims promptly and fairly – you shouldn’t reject a claim unreasonably.

    The policy requirements may differ depending on the circumstances of the claim. This means the you might need to do different things depending on whether your phone is lost or stolen.

    Customers will have to do certain things within either a specified amount of time or a ‘reasonable’ amount of time when they make a claim.

Putting things right

If we decide you’ve treated the customer unfairly, or have made a mistake, we’ll ask you to put things right. Our general approach is that the customer should be put back in the position they would have been in if the problem hadn’t happened. 

Complaints about claims

Where the complaint is about a claim, we may ask you to:

  • make necessary repairs
  • replace the mobile phone or gadget
  • offer a cash settlement – this will generally be the cost of replacing the phone or gadget with one of the same age and condition before the insured event from a reputable source
  • compensate for distress or inconvenience the customer had experienced

Complaints about mis-sold policies

If we think the policy was mis-sold and the customer wouldn’t have gone ahead with the policy had it been sold correctly, we may ask you to:

  • refund their premiums with interest
  • paying all or part of a claim
  • compensate for distress or inconvenience the customer had experienced

Case studies

A consumer’s claim was declined because her insurer said she didn’t ‘own’ the phone

Sadia contacted us after her insurer declined a claim she made on her mobile phone insurance policy when her phone had been stolen.

Mobile Phone Insurance

Read more 

Consumer complains that a cash settlement is not enough

Raju made a claim on his mobile phone insurance policy when he lost his phone. The insurer couldn't find the exact replacement so they offered a cash settlement. Unhappy with the outcome, Raju contacted our service for help.

Mobile Phone Insurance

Read more 

Consumer unhappy with insurer’s decision to decline claim

David was unhappy that his insurer declined his claim for a lost mobile phone. The insurer said it had evidence to show that David had acted fraudulently.

Mobile Phone Insurance

Read more 

Business Support Hub

If you want to talk informally about a complaint you’ve received, you can speak to our Business Support Hub. Our Business Support Hub can give general information on how the Financial Ombudsman might look at a particular complaint. We also offer guidance on our rules and how we work.

Find out how to contact the Business Support Hub.

Information for consumers

If you’re a consumer looking for information on making a complaint, you can read more about how we can help with complaints about mobile phone and gadget insurance on our dedicated information page for consumers. Or to make a complaint, read about how to complain.