Upheld: service failure, poor claims handling, breach of ICOBS 8.1 requirements, repeated errors and broken promises complaint against British Gas Insurance Limited

Decision detail

Summary

Mr S complained about poor service from British Gas Insurance Limited when attempting to arrange an annual boiler service under his HomeCare policy. British Gas made multiple errors including offering cover for an unapproved boiler, incorrectly stating the service had been completed, providing conflicting explanations for why it could not be completed, failing to provide promised manager callbacks, and sending marketing emails after cancelling the policy. Mr S's safety concerns about the unclear guidance led him to switch off his boiler, leaving him without heating or hot water during winter. The ombudsman upheld the complaint and increased compensation from £120 to £300, finding that the repeated errors and their specific impact on Mr S as a vulnerable pensioner justified a higher award.

The Ombudsman's reasoning

The ombudsman applied FCA ICOBS 8.1 rules requiring insurers to handle claims promptly and fairly, provide reasonable guidance, and not unreasonably reject claims. Multiple errors were identified: offering cover for an unapproved boiler, incorrect communications about service completion, unclear explanations from engineers and advisers, unfulfilled callback promises, and marketing emails after cancellation. The ombudsman found that while British Gas offered £120 compensation, this did not adequately reflect the repeated nature of the mistakes and their specific impact on Mr S, particularly as a vulnerable pensioner during winter months who was left without heating and hot water due to safety concerns caused by the firm's unclear guidance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website