Partially upheld: claim handling, incorrect application of law, poor communication, delays in claim progression complaint against First Central Underwriting Limited

Decision detail

Summary

Mr H complained about First Central's handling of a motor insurance claim following a collision with a bent bollard in a car park. Mr H believed the car park operator was at fault and wanted the claim recorded as non-fault, but First Central recorded it as fault. The complaint involved allegations of inadequate investigation, failure to obtain CCTV footage, poor communication, delays in repairs, and provision of unsuitable courtesy car. The ombudsman upheld the complaint in part, finding First Central made errors including applying English rather than Scottish law and causing delays, but correctly recorded the open claim as fault pending liability determination. The ombudsman ordered £550 total compensation for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman's role is to assess whether the insurer acted fairly and reasonably in line with policy terms, not to determine legal liability. First Central is entitled under policy terms to settle claims as it sees fit. While liability remains unresolved, recording an open claim as fault is standard industry practice. First Central made several errors in handling the claim but reasonably restored Mr H's position by continuing to pursue recovery and repairing the car. The £550 compensation is fair and reasonable for the distress caused over several months.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website