Not upheld: Service failures generally complaint against UK Insurance Limited

Decision detail

Summary

Mr and Mrs T made a water damage claim in January 2025 which they subsequently withdrew on 6 February 2025. UKI recorded a £30 cancellation fee charged by its appointed supplier on the CUE database. Mr and Mrs T complained that this record caused them to pay higher insurance premiums when applying to other insurers. The ombudsman found that UKI recorded the claim correctly, showing the £30 as an internal fee rather than a payout, and that Mr T was explicitly told he could record the claim value as £0 when applying for insurance. The complaint was not upheld as Mr and Mrs T's decision to record £30 was their own error, not UKI's fault.

The Ombudsman's reasoning

The ombudsman found that UKI was required as a CUE signatory to keep accurate records of all claims. The £30 cancellation fee was correctly recorded as an internal cost under 'other payment' rather than as a building payout, making clear no insured loss was paid. Although the CUE record should show 'closed withdrawn' rather than 'closed', the underlying claim information was recorded correctly. Mr and Mrs T were explicitly told they could record the claim value as £0 when applying to other insurers, but chose to record £30 themselves. This was their own error, not UKI's responsibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website