Not upheld: unfair claims recording complaint against UK Insurance Limited

Decision detail

Summary

Miss H complained that UK Insurance Limited unfairly recorded her motor insurance claim for a damaged seat belt as a fault incident. The seat belt buckle was damaged by sand and debris and was not covered by the car's warranty. UKI accepted the claim on a goodwill basis despite it not being strictly covered by the policy. Miss H argued she should have been given the option to pay for the repair herself and was unaware of the consequences of claiming. The ombudsman found that UKI had clearly informed Miss H during the initial call that the claim would be recorded as a fault incident, and that recording a claim as fault does not imply responsibility when there is no third party to recover from. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that UKI acted fairly because: (1) Miss H was informed that the claim would be recorded as a fault claim before proceeding; (2) UKI accepted and paid the claim despite it not strictly being covered by the policy; (3) a fault claim recording does not imply responsibility for the damage, only that there was no third party to recover from; (4) Miss H made the decision to claim on her insurance rather than pay for the repair herself; (5) UKI did not pressure Miss H to make the claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website