FCA publishes notice of undertaking by London General Insurance Company

London General Insurance Company Limited (LGI) has given an undertaking in respect of a term in respect of a Nationwide FlexPlus Account Extended Warranty Protection Policy.

The policy set out a list of items that were covered under the policy. This list was preceded by the words ‘Items such as’, which in FCA’s view meant that the list illustrated examples of what was covered. However, other information available to customers indicated that the items in the list were the only items covered by the policy.

The FCA was concerned that customers may be confused about whether certain items were covered under the policy, whether they could make a claim and that LGI had rejected claims for items not listed. The term was not transparent and written in plain and intelligible language in accordance with the Consumer Rights Act 2015.

As a consequence, LGI has:

  • removed the words “such as” from the term;
  • increased the number of items that appear in the list of items covered under the policy;
  • made it clear that only the items listed in the term are covered; and
  • paid in the region of £47,000 redress to approximately 300 consumers.