Upheld: Service failures generally complaint against Yoga Insurance Services Limited

Decision detail

Summary

Mrs L called Yoga Insurance to report a car accident claim and was transferred to E, an accident management company acting as Yoga's agent. E referred Mrs L to credit hire and repair services without providing clear information about her options. Mrs L's car was deemed a total loss, and the claim took several months to resolve, during which she remained in a hire car and received conflicting information. Yoga upheld Mrs L's complaint and offered £100 compensation, but Mrs L referred the matter to the FOS. The ombudsman upheld the complaint, finding that Yoga retained regulatory responsibility for E's poor referral and must pay £300 compensation for the distress and inconvenience caused.

The Ombudsman's reasoning

Yoga, as Mrs L's insurance broker, was obliged to provide clear, fair and not misleading information about her claim options under FCA regulations. Although Yoga appointed E to handle the call on its behalf, Yoga retained regulatory responsibility for ensuring its obligations were met. The recording of the referral call confirmed that E did not provide Mrs L with enough information to make an informed choice. The poor referral caused Mrs L unnecessary distress and inconvenience, including uncertainty about potential liability for hire car costs and a prolonged claims process. Therefore, compensation of £300 was appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website