Cambridge university student Rehana Khanam has finally won her fight against specialist student insurer Endsleigh after they refused to pay out £350 after her brand new specialist racing bike was stolen from out side her lecture hall. The bike was secured with a high quality lock and was only left unattended for a few hours while Ms Khanam was in her lectures.

As she had behaved responsibly and not been careless in any way with her bike, Ms Khanam was confident that Endsleigh would pay out for her claim and was shocked when she received the message that they would not be paying out for her bike.

When she enquired as to why this was, she was informed that with her policy, only bikes which had been locked up and then additionally had the front wheel and saddle removed were actually covered by the policy.

On re-reading her policy, Ms Khanam found that this clause was indeed included in the small print, however, she decided to fight the insurance company, calling this point an “absurd technicality”.

Ms Khanam points out that: "Endsleigh market themselves to students and the idea that everyone would be forced to take their front wheels and saddles into their lectures is completely unworkable.”

“The bike was a 21st birthday present and as such was priceless to me. I locked it up properly using a substantial lock,” she added.

“But after I filed my claim I was told that, because I hadn't removed the saddle and front wheel, the company wouldn't pay out, even though the whole bike was taken.”

“They told me that this was stipulated in the policy, which was complete news to me. Only when I looked at the small print did this point emerge.”

Distraught by the loss of her precious bike, which had sentimental value as a recent birthday present, Ms Khanam pursued Endsleigh, bombarding them with letters and phone calls, which appeared to be having no effect on the insurance company.

For months Ms Khanam continued with her claim, until finally her persistence was rewarded when not only did Endsleigh agree to pay out and waive her excess, they also decided to change their bike insurance policy so that it no longer included the stipulation that the front wheel and saddle must be removed.

A spokesperson for Endsleigh released a statement saying: “Endsleigh has updated its policies this year so that customers do not now need to remove the front wheel, saddle or any other part of the bicycle in order to be covered from theft.”

We recognised that this was often impractical for policyholders and so have updated our cover in order to make things easier for our customers.”

“Although Ms Khanam's older policy clearly stated that they should be removed in order for it to be covered, we have decided to retrospectively pay her claim in light of the updated policies and as a goodwill gesture to a valued customer.”

21 year old Ms Khanam simply said that "The whole thing has been ridiculous, and has made me think twice about ever using Endsleigh again."