Not upheld: Complaints handling failures complaint against Right Choice Insurance Brokers Ltd
Financial Ombudsman decision DRN-5132701 of 2024-12-13T00:00:00+00:00. Complaints handling failures complaint against Right Choice Insurance Brokers Ltd. Outcome: Not upheld.
Decision detail
| Reference | DRN-5132701 |
|---|---|
| Decision date | 2024-12-13T00:00:00+00:00 |
| Firm | Right Choice Insurance Brokers Ltd |
| Product | Motor insurance |
| Claim type | Complaints handling failures |
| Outcome | Not upheld |
| Remedy | Right Choice has already refunded £393.42 in additional premiums, waived £90 in admin charges, and waived an additional £35 admin charge, totalling £125 in compensation. The ombudsman did not order any further remedy. |
Summary
Mr K complained that Right Choice Insurance Brokers failed to refund an additional premium charged due to an unresolved claim and did not respond to his emails. The additional premium was charged because Mr K initially misrepresented his no-claims discount status when the October 2022 claim was still open. After the claim was settled and Mr K provided proof of five years NCD in July 2023, Right Choice delayed processing the refund until April 2024, approximately nine months later. While the ombudsman acknowledged Right Choice's poor service and the stress caused to Mr K, it determined that the firm's subsequent refund of all additional premiums (£393.42) and waiver of £125 in admin charges constituted reasonable compensation. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman found that while Mr K made a misrepresentation regarding his NCD status, this was appropriately handled by the insurer increasing the premium rather than applying more severe CIDRA remedies. Although Right Choice failed to process the refund promptly after receiving proof of five years NCD in July 2023, the firm's subsequent actions of refunding all additional premiums (£393.42) and waiving admin charges totalling £125 were considered reasonable compensation for the nine-month delay and poor service. The ombudsman acknowledged the frustration and stress caused but determined that the compensation already provided was fair and proportionate.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Right Choice Insurance Brokers Ltd, all decisions | 41 | 29% |
| Complaints handling failures, all decisions | 4,445 | 37% |
| Motor insurance, all decisions | 24,036 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website