Upheld: Service failures generally complaint against Clegg Gifford & Co Limited

Decision detail

Summary

Mr M complained that he did not receive a 30% discount on his Taxi insurance renewal as promised by broker Clegg Gifford & Co Limited. Clegg had informed Mr M that the discount would be applied if no claims were made in the first year, but the insurer subsequently declined to offer renewal terms due to changed underwriting criteria. The ombudsman upheld the complaint, finding that while the insurer had sole discretion over renewal terms, Clegg presented the discount as definite rather than conditional, failing to clearly communicate that renewal was not guaranteed. The ombudsman directed Clegg to pay £100 compensation for the distress and inconvenience caused by this misleading information.

The Ombudsman's reasoning

The ombudsman found that while the insurer has sole discretion over what cover to offer and on what terms, Clegg as a broker had a responsibility to provide clear, fair and non-misleading information. The discount was presented as definite rather than conditional on the insurer's underwriting decision. Although Mr M could not demonstrate he would have acted differently with clearer information, the lack of clarity caused him distress and inconvenience. The £100 compensation was deemed fair to reflect this.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website