Not upheld: claims handling and settlement; miscommunication complaint against UK Insurance Limited

Decision detail

Summary

Miss P reported a low-speed collision to UKI as information only, warning of potential fraud regarding the third-party repair bill. UKI initially told her it would be logged as information only but instead set up a claim and proactively settled the third-party claim as a fault claim without consulting Miss P or inspecting her car. Miss P complained that she had not consented to the claim, believed the settlement was excessive, and felt UKI had not taken her fraud warnings seriously. The ombudsman found UKI acted reasonably in handling the claim under its policy entitlements, as Miss P had admitted fault and a qualified engineer had assessed the damage. While acknowledging UKI's poor initial communication, the ombudsman concluded the complaint was not upheld and the £50 compensation offered was fair.

The Ombudsman's reasoning

Although Miss P reported the incident as information only and UKI provided incorrect initial advice, the ombudsman found UKI acted reasonably in setting up and settling the claim as a fault claim because: (1) Miss P admitted fault by stating she rolled into a stationary car; (2) UKI was entitled under the policy to settle claims; (3) the engineer's assessment of damage was reasonable and consistent with the incident circumstances; (4) inspecting Miss P's car would not have affected the assessment of the third-party vehicle damage; and (5) the claim would have progressed similarly regardless. The ombudsman acknowledged UKI's poor communication contributed to Miss P's distress but found the £50 compensation offered to be fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website