Not upheld: Account administration errors complaint against Tradex Insurance Company Limited

Decision detail

Summary

Mr M complained that Tradex Insurance mishandled his motor trade insurance policy by withdrawing a 55% no-claims discount and increasing his premium. Mr M had claimed three years NCD when taking out the policy in late May 2022, but provided incomplete evidence including gaps in October-November 2021 and March-April 2022, with his previous policy having expired in September 2021. The ombudsman found that Mr M failed to provide sufficient continuous evidence of three years' no-claims driving history and that Tradex acted fairly in removing the discount. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr M failed to provide sufficient evidence of three years' continuous no-claims driving history before the policy start date in late May 2022. Although Mr M provided some evidence of taxi insurance coverage and no claims for the period December 2021 to February 2022, there were unexplained gaps in October-November 2021 and March-April 2022. The previous policy evidence showed expiry in September 2021, creating a break in coverage. Given these gaps and lack of documentation, Tradex was entitled to decline the three-year NCD claim and adjust the premium accordingly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website