Upheld: Goods and services under S75 complaint against Tradex Insurance Company Limited
Financial Ombudsman decision DRN-3942389 of 2023-02-20T00:00:00+00:00. Goods and services under S75 complaint against Tradex Insurance Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-3942389 |
|---|---|
| Decision date | 2023-02-20T00:00:00+00:00 |
| Firm | Tradex Insurance Company Limited |
| Product | Motor insurance |
| Claim type | Goods and services under S75 |
| Outcome | Upheld |
| Remedy | 1. Reimburse diagnostic check costs with 8% simple interest per annum from date of payment to settlement; 2. Compensate for evidenced loss of income on days vehicle was faulty with 8% simple interest per annum from date of payment to settlement; 3. Pay £100 compensation for distress and inconvenience caused by failure to provide professional installation |
Summary
Mr R1 and Mr R2 complained that a telematics box installed in their taxi caused power steering damage and loss of earnings. Tradex required self-installation but provided only generic instructions that did not account for vehicles with multiple ECUs. Power steering problems occurred immediately after installation and resolved when the box was removed, with a garage confirming the box was installed too close to the power steering ECU. The ombudsman upheld the complaint, finding Tradex's instructions were inadequate for safe self-installation and should have offered professional installation. Tradex was ordered to reimburse diagnostic costs, compensate for lost income with interest, and pay £100 for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Tradex's instructions were generic and did not adequately account for vehicles with multiple ECUs. The instructions implied professional installation was required but Tradex only offered self-installation. The temporal relationship between installation and power steering failure, combined with resolution upon removal, supported causation. The instructions were insufficiently clear for an ordinary consumer to install the box safely without risk of damage. Tradex failed to consider all available evidence when dismissing the complaint.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Tradex Insurance Company Limited, all decisions | 65 | 31% |
| Goods and services under S75, all decisions | 19,153 | 37% |
| Motor insurance, all decisions | 24,036 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website