Not upheld: Motor insurance, claim handling complaint against First Central Underwriting Limited

Decision detail

Summary

Mr A claimed on his car insurance policy with First Central following a serious accident on 6 October 2025. He suspected an ADAS malfunction caused the accident and sent an email on 16 October 2025 describing the suspected malfunction and providing evidence. First Central settled the claim on 17 October 2025, and the car was subsequently disposed of by the salvage agent. When the manufacturer requested inspection on 6 November 2025, the car had already been sold. Mr A complained that First Central should have retained the car, but the ombudsman found the email was not an explicit retention request and disposal after settlement was standard practice.

The Ombudsman's reasoning

The ombudsman found that the email of 16 October 2025 did not constitute an explicit request to retain the car for inspection. While Mr A described suspected malfunctions, he did not explicitly instruct First Central to pause disposal. Once the claim was settled and the car became First Central's legal property, it was reasonable and in line with standard industry practice for them to dispose of the car to minimise storage charges. The manufacturer's inspection request came after settlement and disposal had already occurred.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website