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Step 1 — Get the Decline Reason in Writing
Request a formal written decline letter that states the specific reason and the policy clause being relied on. Insurers are required by FAIS to provide this.
Common decline reasons: usage mismatch, undisclosed driver, tracker not active, late notification, security warranty breach, value-basis dispute.
Step 2 — Request an Internal Review
Most insurers have a complaints department separate from claims. Request a formal internal review with new evidence — supporting documents, photos, witness statements, expert opinions.
Internal reviews typically take 30-60 days.
Step 3 — Escalate to the National Financial Ombud (NFO)
If the internal review upholds the decline and you believe you have been treated unfairly, lodge a complaint with the National Financial Ombud Scheme. The NFO is free for consumers and binding on the insurer up to certain monetary thresholds set out in its rules.
Lodge online via the NFO portal. Provide: the decline letter, your policy schedule, your version of events, and any supporting documents. The NFO took over from the Ombudsman for Short-Term Insurance (OSTI) on 1 March 2024 — older OSTI cases continue under the new body.
Step 4 — FAIS Ombud for Advice Issues
If the issue is that you were sold the wrong product or given misleading advice rather than your claim being unfairly declined, the FAIS Ombudsman is the right authority. FAIS handles sales conduct and advice complaints; the NFO handles claim outcomes.
How OneCompare Helps
Send us your decline letter and policy schedule for a free written review. We assess decline grounds, identify weak points in the insurer's case, and suggest a dispute strategy.