Upheld: incorrect recording of incident on CUE database leading to overcharging on insurance premiums; failure to correct error despite repeated queries complaint against West Bay Insurance Plc
Financial Ombudsman decision DRN-6173310 of 2026-04-30T00:00:00+00:00. incorrect recording of incident on CUE database leading to overcharging on insurance premiums; failure to correct error despite repeated queries complaint against West Bay Insurance Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6173310 |
|---|---|
| Decision date | 2026-04-30T00:00:00+00:00 |
| Firm | West Bay Insurance Plc |
| Product | motor insurance |
| Claim type | incorrect recording of incident on CUE database leading to overcharging on insurance premiums; failure to correct error despite repeated queries |
| Outcome | Upheld |
| Remedy | West Bay Insurance Plc must pay Ms S £750 compensation for distress and inconvenience. West Bay must also review any relevant outstanding costs arising from its errors that are notified to it by Ms S and pay interest on any sum due to her. |
Summary
Ms S reported a non-fault motor insurance incident to West Bay in November 2021 and expected it to be recorded as 'notification only'. When Ms S and her broker queried the recording in February 2023, West Bay initially provided reassurance but the incident was actually recorded incorrectly on the CUE database as an outstanding claim with NCD disallowed, causing Ms S to be overcharged on other insurance policies. Despite repeated queries from Ms S and the broker from February 2023 through January 2025, West Bay failed to check and correct the CUE record, and even rejected Ms S's formal complaint in August 2025 without verifying the actual CUE entry. West Bay only acknowledged the error in November 2025 after an FOS Investigator began reviewing the complaint. The ombudsman upheld the complaint, finding that West Bay should have checked CUE when first queried and that the delay caused Ms S considerable distress and inconvenience over an extended period.
The Ombudsman's reasoning
West Bay made a serious error in recording the incident on CUE and compounded this by failing to check and correct the record despite Ms S and the broker raising queries repeatedly from February 2023 onwards. The delay in checking CUE and correcting the error meant Ms S received incorrect information and was overcharged on other insurance policies for several years. The ombudsman found that West Bay's advisors relied on an internal record that differed from CUE without verifying the actual CUE entry, and even rejected Ms S's formal complaint without checking CUE. The considerable time and effort Ms S spent querying the issue with West Bay, liaising with the broker, and dealing with other insurers could have been avoided had the record been correct or checked and amended when first queried.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| West Bay Insurance Plc, all decisions | 355 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website