Upheld: inadequate claims investigation and settlement complaint against esure Insurance Limited

Decision detail

Summary

Mrs R (represented by named driver Mr S) complained that esure failed to properly investigate a third party claim arising from a multi-vehicle incident in January 2023. Mr S's car made minor contact with the rear of a third party vehicle that had already been hit by other vehicles in icy conditions. esure initially closed the claim as notification only, but in September 2025 settled a £3,745 total loss claim from the third party insurer without properly investigating the extent of damage caused by Mr S's contact. The ombudsman upheld the complaint, finding inconsistencies in the third party insurer's damage description and photographic evidence, and that esure should have promptly investigated further when provided with text messages confirming the TPV had been hit multiple times. esure was required to conduct a proper investigation with engineer's opinion and update databases to show the claim amount in dispute.

The Ombudsman's reasoning

The ombudsman found that esure did not properly investigate the extent of damage Mr S was liable for. There were inconsistencies between the third party insurer's description of damage (rear centre, small dents/scratches) and the images showing significant passenger side damage, with no clarification of whether this was pre-existing. When esure received the text messages in September 2025 confirming the TPV had been hit multiple times before Mr S's contact, it should have promptly investigated further but did not. The ombudsman noted that claim costs can affect future premiums depending on insurer rating systems, contrary to esure's assertion. While Mr S has some liability for making contact with the TPV, esure must properly investigate the extent of that liability and demonstrate fair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website