Partially upheld: claim handling delays, failure to establish liability promptly, poor communication, adverse impact on No Claims Discount and premiums complaint against Admiral Insurance (Gibraltar) Limited
Financial Ombudsman decision DRN-6187737 of 2026-05-29T00:00:00+00:00. claim handling delays, failure to establish liability promptly, poor communication, adverse impact on No Claims Discount and premiums complaint against Admiral Insurance (Gibraltar) Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6187737 |
|---|---|
| Decision date | 2026-05-29T00:00:00+00:00 |
| Firm | Admiral Insurance (Gibraltar) Limited |
| Product | motor insurance |
| Claim type | claim handling delays, failure to establish liability promptly, poor communication, adverse impact on No Claims Discount and premiums |
| Outcome | Partially upheld |
| Remedy | Admiral Insurance (Gibraltar) Limited must pay Mr J an additional £150 compensation for distress and inconvenience (total £350), within 28 days, plus interest at 8% per annum simple if paid later. Admiral must recalculate premiums on any newer policy if it was affected by the open fault claim status. |
Summary
Mr J complained that Admiral took excessive time (from 2021 to 2025) to establish liability on a non-fault motor insurance claim, during which the claim was treated as his fault, reducing his No Claims Discount and increasing his premiums. Admiral acknowledged avoidable delays in liaising with their law firm and initially offered £200 compensation. The ombudsman upheld the complaint in part, increasing compensation to £350 for distress and inconvenience, and requiring premium recalculation on affected policies. However, the ombudsman rejected Mr J's request to restore lost NCD years to a different policy, finding his decision to transfer the policy to his wife was an intervening factor that broke the causal chain.
The Ombudsman's reasoning
While Admiral's law firm was outside the ombudsman's remit, Admiral's own actions in liaising with the law firm were within scope. Although litigation necessarily takes time and industry practice is to record open claims as fault until costs are recovered, Admiral's avoidable delays in their own processes caused unnecessary distress and inconvenience. The compensation of £350 reasonably reflects this inconvenience and uncertainty. However, the change of policyholder was an intervening factor breaking the chain of causation, making it unfair to require Admiral to restore lost NCD years to a different policy, particularly as the transferred policy has expired and the wife would have accrued her own NCD during that period.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Admiral Insurance (Gibraltar) Limited, all decisions | 1,923 | 44% |
Source
Read the original decision on the Financial Ombudsman Service website