Not upheld: claim handling and communication failures; alleged data protection breach complaint against Watford Insurance Company Europe Limited

Decision detail

Summary

Miss R complained that Watford unfairly handled a third-party motor insurance claim, failed to warn her of legal action, and disclosed her personal details without permission, resulting in a County Court Judgment being served against her in October 2025. Watford acknowledged its claim handling could have been more proactive and clearer but denied responsibility for the court proceedings, which were initiated by the third-party insurer, and confirmed it had not disclosed her details. The ombudsman found that while Watford should have informed Miss R of the third-party's threat to pursue legal proceedings and been clearer about why the claim was closed, Watford was not responsible for the court proceedings themselves and took appropriate immediate action upon learning of the CCJ. The ombudsman upheld Watford's £300 compensation award as fair and reasonable and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while Watford should have informed Miss R of the third-party's threat to pursue legal proceedings and should have been clearer that the claim was closed due to lack of contact rather than settled, Watford was not responsible for the court proceedings themselves as these were initiated by the third-party insurer, not Watford. The ombudsman noted that Watford took immediate action when made aware of the CCJ in October 2025, which was the appropriate response. The ombudsman found no evidence that Watford disclosed Miss R's personal details. The £300 compensation awarded by Watford was deemed fair and reasonable for the stress and inconvenience caused by the service failures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website