Upheld: unfair claim handling and breach of policy terms complaint against Financial & Legal Insurance Company Ltd

Decision detail

Summary

Mrs W claimed breakdown assistance after experiencing a flat tyre on a motorway with five children. F&L's agent could not change the tyre due to socket incompatibility and informed Mrs W that recovery would be a paid service. F&L refused to uphold her complaint, but the ombudsman found that F&L failed to meet its policy obligations by not arranging recovery or offering a clear alternative with covered costs. The ombudsman rejected F&L's reliance on a policy term from a different section and found that the lack of support and follow-up caused Mrs W distress. The ombudsman upheld the complaint and ordered F&L to pay £200 compensation.

The Ombudsman's reasoning

The ombudsman found that while F&L's agent's inability to change the tyre was not unreasonable based on the agent's report, F&L failed to meet its policy obligations by not arranging recovery or offering a clear alternative with covered costs. The ombudsman determined that F&L incorrectly applied a term from a different policy section to restrict its support. The failure to provide promised support, combined with leaving Mrs W without recovery options or reassurance, caused distress beyond the natural upset of breaking down on a motorway.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website