Not upheld: Credit file / adverse marker disputes complaint against Accredited Insurance (Europe) Ltd

Decision detail

Summary

Mr C complained that Accredited Insurance mishandled his motor insurance policy by incorrectly recording a June 2024 hit-and-run incident as a claim rather than notification only, which caused his NCD to be incorrectly reduced to zero years in renewal quotes for both September 2024 and September 2025. The incorrect quotes were over £2,000 and £1,020 respectively, but Accredited corrected them promptly to £1,330 and £950 before each renewal date. The ombudsman found that while the errors were unpleasant and irritating, they caused no actual financial loss because Mr C did not accept the incorrect quotes and was free to shop around. The ombudsman upheld Accredited's payment of £100 compensation as fair and reasonable for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman acknowledged that Accredited made errors in recording the incident and calculating renewal quotes, but found that these errors were corrected promptly before each renewal date, preventing actual financial loss. The ombudsman noted that Mr C was free to shop around and provide accurate information to other insurers, and that he did not accept the incorrect quotes. The ombudsman found that while the errors caused unpleasant surprise and irritation, the impact was short-lived and the £100 compensation was fair and reasonable under FOS guidelines for distress and inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website