Partially upheld: Account administration errors complaint against Esure Services Limited

Decision detail

Summary

Mr L held a motor insurance policy with esure that was set to expire on 19 April 2024. Although the policy schedule clearly stated non-automatic renewal and esure sent a renewal invitation in March 2024, Mr L did not renew. After the policy expired, Mr L was caught driving uninsured and prosecuted, receiving six penalty points and a £300 fine. Esure initially indicated it would accept responsibility and offer £60 compensation, but subsequently turned down the complaint entirely. The ombudsman found esure should have contacted Mr L to confirm policy expiry and that its conflicting information and provision of incorrect documentation materially worsened Mr L's distress, particularly given his concerns about job security as an HGV driver. The ombudsman upheld the complaint in part, directing esure to reimburse the £300 fine with 8% interest and pay £200 compensation for distress and inconvenience.

The Ombudsman's reasoning

While Mr L bore some responsibility for failing to note the renewal requirement and not noticing non-payment for the new policy year, esure failed to take reasonable steps to confirm policy expiry. The ombudsman expected esure to contact Mr L again after the renewal invitation to confirm the policy had expired. Esure's provision of conflicting information (initially accepting error and offering £60, then turning down the complaint) and sending the wrong policy schedule materially worsened Mr L's distress, particularly given his concerns about job security as an HGV driver. The ombudsman rejected compensation for future premium increases as Mr L provided no evidence and had since sold the vehicle. The £300 fine was reimbursable with interest as it resulted directly from esure's failure to adequately warn of expiry.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website