Failure to make sufficient enquiries in death benefits case 2
Reference: P00816
The member died without having made any nomination. His employer simply paid the death in service lump sum to the member’s mother, in the mistaken belief that she was his next of kin (the form of discharge she was asked to sign had included a statement to this effect). However, the employer accepted that the mother had not even been asked whether her son had children or other dependants. In fact, the deceased had a daughter, who brought the complaint.
The Ombudsman was scathing: “I have no doubt that the Company did fail to take into account a relevant factor namely the existence of other potential beneficiaries… had diligent and careful enquiries been made they would have brought to light the existence of Mr O’Brien’s child”.
As exercise of the discretion had been “fatally flawed”, the decision was set aside and remitted for proper consideration.
