Upheld: inadequate claim handling, poor communication, failure to defend claim, failure to inform customer of material developments complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mrs N complained about Admiral's handling of her motor insurance claim following an August 2022 accident. The claim remained open for nearly three years with the other driver disputing liability, eventually going to court in July 2025 where the other driver was found fully liable. Mrs N alleged Admiral provided inadequate legal representation, failed to communicate properly, sent letters to her old address despite her notifying them of a change, paid the third party £9,144 without her knowledge, and only informed her of this on the morning of the court case. Admiral accepted some failures and offered £300 compensation, but Mrs N rejected this. The ombudsman upheld the complaint, finding Admiral failed to adequately progress the claim, defend against the third party's proceedings, or keep Mrs N informed despite her repeated complaints. Although the claim was recorded as non-fault and had minimal impact on premiums, Admiral caused considerable distress and was ordered to pay £600 compensation.

The Ombudsman's reasoning

The ombudsman found that while Admiral had contractual discretion to conduct and settle claims, it had a reasonable expectation to progress the claim timely and keep Mrs N updated. Admiral failed to adequately explain what was happening, why the claim took nearly three years to reach court, or how it affected her premiums. Admiral was aware of Mrs N's ongoing concerns about progress through multiple complaints but failed to address them. Most critically, Admiral was aware of third party legal proceedings in December 2024 and March 2025 but did not defend the claim, resulting in a default judgment in April 2025. Admiral then paid the third party without informing Mrs N and only told her about this on the morning of the court case. The ombudsman found no evidence that Admiral made adequate attempts to contact Mrs N despite knowing she was anxious for resolution and would have responded quickly. However, the ombudsman recognised mitigating factors: Admiral paid Mrs N's settlement promptly, recorded it as non-fault, allowed her NCB, and ultimately won the liability dispute. The underwriting analysis showed the open claim had minimal impact on premiums (£10.02 lower in 2023, £9.64 lower in 2024, £2.85 higher in 2025). Overall, Admiral caused Mrs N considerable distress, upset, and worry over many months and should compensate her accordingly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website