Upheld: Other regulated complaint complaint against Uinsure Limited
Financial Ombudsman decision DRN-5388082 of 2025-06-25T00:00:00+00:00. Other regulated complaint complaint against Uinsure Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5388082 |
|---|---|
| Decision date | 2025-06-25T00:00:00+00:00 |
| Firm | Uinsure Limited |
| Product | Home insurance |
| Claim type | Other regulated complaint |
| Outcome | Upheld |
| Remedy | Uinsure Limited must pay £100 compensation to Mr J for distress and inconvenience. Uinsure must fairly consider any claims Mr J makes under the policy retrospectively. If any claim is paid, Uinsure must add 8% simple interest per annum from the date of loss until the date of settlement. |
Summary
Mr J complained that Uinsure unfairly cancelled his home insurance policy when he only requested removal of duplicate buildings cover. Uinsure cancelled the existing policy and created a new one, resulting in a break in cover between 29 October and 2 November 2021, and Mr J was left without access to legal cover benefits. Uinsure acknowledged its error but offered only £50 compensation. The ombudsman upheld the complaint, finding Uinsure breached FCA conduct rules by failing to clearly communicate the cancellation, and ordered £100 compensation plus consideration of any retrospective claims with 8% interest.
The Ombudsman's reasoning
The FCA's ICOBS 7 requires insurers to handle policy cancellations fairly. Uinsure failed to clearly communicate that it was cancelling Mr J's existing policy rather than simply removing the duplicate cover as requested. This resulted in a break in cover and caused Mr J considerable distress and inconvenience. While Uinsure's offer of £50 was acknowledged, the ombudsman determined that £100 more fairly reflects the impact on Mr J, considering the time and effort required to pursue the complaint and the distress experienced, though noting insufficient evidence linked the financial losses to Uinsure's actions.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Uinsure Limited, all decisions | 11 | 55% |
| Other regulated complaint, all decisions | 19,202 | 17% |
| Home insurance, all decisions | 21,293 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website