Upheld: Service failures generally complaint against Uinsure Limited
Financial Ombudsman decision DRN-6021665 of 2026-02-05T00:00:00+00:00. Service failures generally complaint against Uinsure Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6021665 |
|---|---|
| Decision date | 2026-02-05T00:00:00+00:00 |
| Firm | Uinsure Limited |
| Product | Other regulated product |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | Uinsure Limited must pay Mr S £150 in compensation for the distress experienced, payable within 28 days of Mr S's acceptance of the decision. If payment is made after the deadline, interest at 8% per annum simple must be paid from the deadline date to the date of payment. |
Summary
Mr S complained that Uinsure told him his Landlord Insurance policy had been put on hold after he cancelled his direct debit, despite having paid the full annual premium upfront. Uinsure's system automatically generated a letter stating the policy was on hold, though it was later reinstated via email with confirmation there was no actual break in cover. Mr S received the concerning letter on a Saturday and experienced distress, particularly given his health problems. The ombudsman upheld the complaint, finding Uinsure's automatic system unsatisfactory and not in line with fair treatment duties, and awarded £150 compensation for the distress caused.
The Ombudsman's reasoning
The ombudsman found that Uinsure's system automatically sending a policy-on-hold letter when a direct debit is cancelled, despite full premium payment, is unsatisfactory and fails to treat customers fairly. While Uinsure sent a reassuring email on 21 March 2025, it was unclear, did not adequately explain the situation, and arrived before the concerning letter. The letter caused Mr S distress, particularly as he received it on a Saturday when unable to contact Uinsure. Mr S's health problems meant the distress had a greater impact than it might otherwise have had. Although there was no actual break in cover with the insurer, the administrative confusion and communication failures warranted compensation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Uinsure Limited, all decisions | 11 | 55% |
| Service failures generally, all decisions | 32,767 | 33% |
| Other regulated product, all decisions | 51,105 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website