Partially upheld: claim handling - failure to investigate and obtain evidence complaint against Tesco Underwriting Limited

Decision detail

Summary

Mr T complained that Tesco failed to investigate his motor insurance claim and obtain CCTV footage after he reported an accident in April 2025. Mr T initially stated he would not claim and would settle directly with the third party, but changed his mind in June 2025 and requested to claim. The Ombudsman found that Tesco acted reasonably by not investigating when the claim was reported as notification only, and that Tesco had clearly explained to Mr T that evidence would need to be obtained promptly if he decided to claim. The complaint was partially upheld, with £200 compensation awarded for inaccuracies in Tesco's final response letter rather than for the failure to investigate.

The Ombudsman's reasoning

The Ombudsman found that it was not unreasonable for Tesco to refrain from investigating when the claim was reported as notification only, as insurers cannot pursue third parties without claim costs to recover. The Ombudsman was satisfied that Tesco provided clear information to Mr T about the need to decide promptly whether to claim, and that Mr T himself demonstrated awareness that CCTV footage would be deleted after a certain period. The Ombudsman rejected the argument that insurers must act proactively once notified of an incident, noting that each complaint is determined on its own merits. However, compensation was awarded for inaccuracies in Tesco's final response letter.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website