Did Saga really want me to pay £226 for a medical screening? Of course it wouldn't - and what a muddle Saga has made of all this. This concerned an annual multi-trip insurance for European travel. The company was now asking for an extra £226. Saga initially told me that this increase was entirely due to the additional underwriting costs. It pointed me towards the policy booklet, which sets out that an additional premium may be charged where medical information is updated and the risk of the policyholder making a claim increases as a result. It refused to budge on what seemed a drastic increase and piously reminded you and me that it was incumbent on customers to declare all new medical conditions and failing to do so might invalidate the policy. This is true enough, but did not account for everything in this instance. You then took the case to the Financial Ombudsman Service (FOS). In compiling a file for the ombudsman, someone else at Saga cast fresh eyes on your case and discovered that there had been an error. This is, of course, was what you and I had been saying all along. In fact, the inflated increase was largely because they had not taken your husband's medical conditions into account. Unknown to either of you, as a couple you had been paying £128 less than you should have been. When these additional health conditions were confirmed, the system corrected this underpayment. Saga said that, had it been aware of this at the time, it would have written off the original undercharge and just asked for £98 - which reflects the increase due to your health status. Given what it had found, it decided to waive the whole £226. It called the FOS five days later to let it know all this and asked if it still needed the case notes. The FOS responded later that day saying that, as the matter was resolved, it would close it without a formal case being opened. This spared Saga the FOS tariff for such a case, which then was £500 but from this month has risen to £550.