Not upheld: Service failures generally complaint against Aioi Nissay Dowa Insurance UK Limited

Decision detail

Summary

Miss Y complained that ANDI failed to refund her premium after closing incident 1 as non-fault. She had reported three incidents: incident 1 (scratch from another car, reported as information only), incident 2 (her fault claim), and incident 3 (third party claim, liability disputed). At renewal in November 2023, her premium doubled to approximately £2,100 per year. The ombudsman found that incident 1 was closed as information only in March 2023, before the renewal, and did not affect the renewal premium calculation. Although ANDI made an error in initially recording incident 1 as affecting her no claims discount (corrected in May 2024), this did not impact the actual premium. The complaint was not upheld as no refund was due.

The Ombudsman's reasoning

The ombudsman applied standard insurance industry practice whereby open claims are treated as fault claims until settled, and refunds are due only when a previously open claim affecting the premium closes as non-fault. Since incident 1 was closed as information only in March 2023, before the November 2023 renewal, it could not have affected the renewal premium and therefore no refund was due. Incident 3 remained open at renewal and was correctly treated as a fault claim. Although ANDI made an error in recording incident 1 as affecting the no claims discount (corrected in May 2024), the pricing team confirmed this error did not affect the actual premium calculation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website