Not upheld: Service failures generally complaint against Clegg Gifford & Co Limited
Financial Ombudsman decision DRN-2842095 of 2021-08-11T00:00:00+00:00. Service failures generally complaint against Clegg Gifford & Co Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-2842095 |
|---|---|
| Decision date | 2021-08-11T00:00:00+00:00 |
| Firm | Clegg Gifford & Co Limited |
| Product | Motor insurance |
| Claim type | Service failures generally |
| Outcome | Not upheld |
| Remedy | No increase to the £125 compensation offered by Clegg Gifford was required. |
Summary
A limited company complained that its insurance broker, Clegg Gifford, failed to provide claims experience and claims log documents with renewal documents, preventing it from shopping around for cheaper cover. The broker acknowledged the error and offered £125 compensation. The ombudsman did not uphold the complaint, finding no actual financial losses or evidence of lower premiums available elsewhere. While the ombudsman acknowledged the inconvenience caused, it determined that the £125 offer was fair and reasonable, and rejected the request for £5,000 compensation for stress and potential business losses.
The Ombudsman's reasoning
The ombudsman acknowledged Clegg Gifford's error but found that while inconvenience was caused, there was no actual financial loss. The complainant could not provide evidence of lower premiums available elsewhere or actual business losses. The ombudsman distinguished between potential losses (which cannot be compensated) and actual losses (which did not occur). Compensation for a limited company's distress cannot be awarded; only inconvenience and actual financial losses can be considered.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Clegg Gifford & Co Limited, all decisions | 8 | 44% |
| Service failures generally, all decisions | 32,767 | 33% |
| Motor insurance, all decisions | 24,036 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website