Upheld: Account administration errors complaint against Uinsure Limited

Decision detail

Summary

E, a limited company, complained that Uinsure Limited told its director the Landlord Insurance policy had been put on hold after the director cancelled the direct debit for renewal, despite the premium having been paid in full upfront. Uinsure sent a concerning letter on 19 March 2025 stating the policy was on hold, followed by a reassurance email on 21 March 2025 confirming cover was reinstated. The ombudsman found Uinsure's system unsatisfactory as it automatically triggered a hold notice when direct debits were cancelled regardless of whether premiums were paid. Although E could not claim compensation for distress as a legal entity, the ombudsman upheld the complaint and directed Uinsure to issue a formal apology for the poor service and concerns caused.

The Ombudsman's reasoning

The ombudsman found that Uinsure's system was unsatisfactory because it automatically sent a letter stating the policy was on hold when a direct debit was cancelled, even though the premium had been paid in full. The email sent to reassure Mr S had three problems: it arrived before the concerning letter, it was unclear about what happened and why, and it used the word 'reinstated' which implied the policy had been cancelled. The ombudsman acknowledged that while E as a legal entity cannot experience distress, it can suffer financial, operational or reputational harm. However, in this case, there was no actual break in cover and only minor inconvenience to E. Nonetheless, Uinsure should have apologised for its poor service rather than rejecting the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website