Not upheld: unfair treatment on renewal; liability decision; no claims discount errors; premium charging error; poor customer service complaint against UKI Insurance Ltd
Financial Ombudsman decision DRN-6116366 of 2026-05-26T00:00:00+00:00. unfair treatment on renewal; liability decision; no claims discount errors; premium charging error; poor customer service complaint against UKI Insurance Ltd. Outcome: Not upheld.
Decision detail
| Reference | DRN-6116366 |
|---|---|
| Decision date | 2026-05-26T00:00:00+00:00 |
| Firm | UKI Insurance Ltd |
| Product | motor insurance |
| Claim type | unfair treatment on renewal; liability decision; no claims discount errors; premium charging error; poor customer service |
| Outcome | Not upheld |
| Remedy | £400 total compensation (£150 on 27 February 2025 and £200 on 26 March 2025); £174 refund of overcharged premium; £50 compensation for premium error; offer to waive cancellation fee if Mr T seeks alternative cover |
Summary
Mr T complained that UKI treated him unfairly when renewing his motor insurance, citing a significant premium increase due to a fault claim he disputed, conflicting information about his no claims discount, and a premium charging error. UKI held Mr T liable for an August 2024 collision where a named driver reversed into another car on a narrow road, with no witnesses or footage available. Although UKI provided incorrect and confusing information about Mr T's NCD and charged the wrong premium initially, it eventually corrected these errors and offered £400 compensation plus a £174 refund. The ombudsman found UKI's liability decision was reasonable, the NCD errors were eventually resolved correctly, and the compensation was fair, therefore not upholding the complaint.
The Ombudsman's reasoning
The ombudsman found that under the policy terms, UKI had the right to make liability decisions without Mr T's agreement. Given the circumstances of the August 2024 collision (narrow road, bus involved, no witnesses or footage), the decision to accept liability was reasonable. While UKI's communications about the NCD were confused and contradictory, the ombudsman was satisfied that UKI eventually corrected this and the policy documents properly reflected nine years NCD. The premium charging error was acknowledged and refunded with compensation. Overall, the £400 compensation plus £174 refund was deemed fair and in line with FOS awards in similar circumstances.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| UKI Insurance Ltd, all decisions | 1 | 0% |
Source
Read the original decision on the Financial Ombudsman Service website