Not upheld: Motor insurance, claim handling complaint against Lloyd Latchford Group Limited

Decision detail

Summary

Mr M complained that Lloyd Latchford Group Limited rejected his proof of seven years no claims bonus (NCB) when taking out a motor insurance policy, with six years derived from motor trade insurance. He wanted cancellation fees waived and compensation for losses and hassle. Lloyd Latchford cancelled the policy but later agreed to waive cancellation fees and charged only pro-rata for 42 days of cover. The ombudsman found that motor trade NCB is not acceptable for private motor insurance policies, so Lloyd Latchford correctly rejected the proof and was entitled to cancel. The pro-rata charges were fair and reasonable, and the fee waiver provided sufficient remedy. The complaint was not upheld.

The Ombudsman's reasoning

Motor trade earned NCB is not acceptable for private motor insurance policies, so Lloyd Latchford did not make an error in rejecting the NCB proof. There was no obligation to contact the previous insurer as this would not have changed the outcome. It was Mr M's responsibility to provide correct proof of NCB. Lloyd Latchford's decision to waive cancellation fees and charge only pro-rata for time on cover was fair and reasonable. The firm cannot be held accountable for another insurer's pricing, and the hassle caused was sufficiently addressed by the fee waivers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website