Partially upheld: Service failures generally complaint against Clegg Gifford & Co Limited

Decision detail

Summary

Mr P complained that Clegg Gifford overcharged him for his Motor Trader insurance policy between 2018 and 2022 by repeatedly placing him with insurer T without searching the market for better rates. The ombudsman found no evidence of overcharging during this period, as only insurer T was willing to provide cover due to Mr P's driving conviction. However, the ombudsman upheld the complaint in part, finding that Clegg Gifford made an error in 2023 by incorrectly disclosing Mr P's conviction when attempting to obtain a quotation from another insurer, causing distress and inconvenience. Although Mr P suffered no financial loss as he obtained cheaper cover through another broker, the ombudsman ordered Clegg Gifford to pay £250 in compensation for the distress and inconvenience caused by this error.

The Ombudsman's reasoning

The ombudsman found that Clegg Gifford fulfilled its obligations as an insurance broker between 2018 and 2022 by identifying the lowest priced product available to it that met Mr P's demands and needs. Although only insurer T was willing to provide a quotation due to Mr P's conviction, this was the only option available on Clegg Gifford's panel, making it the lowest priced product by default. The ombudsman rejected Mr P's argument that the absence of search evidence proved Clegg Gifford did not search the market, noting that if no other insurer was willing to quote, there would be no search evidence. However, the ombudsman found that Clegg Gifford made an error in 2023 by incorrectly disclosing Mr P's conviction when attempting to obtain a quotation from insurer C, which caused distress and inconvenience, though Mr P suffered no financial loss as he obtained cover elsewhere at a lower premium.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website