Not upheld: guarantee terms and unfair settlement offer complaint against UK Insurance Limited (UKI)

Decision detail

Summary

Mrs E complained that UKI refused to provide a ten-year guarantee for pathway repairs damaged by collapsed drains, instead offering only a two-year guarantee and subsequently a cash settlement. Mrs E, who has a disability and safety concerns, argued the guarantee should match the ten-year guarantee provided for the drain repairs and that she was unfairly pressured into accepting the cash settlement. The ombudsman found that UKI's policy terms clearly limited guarantees to 12 months, making the two-year offer exceed contractual requirements. The ombudsman rejected arguments based on the Equality Act 2010 and found the cash settlement reasonable. Additionally, the ombudsman found Mrs E's complaint referral was outside the six-month deadline with no exceptional circumstances to excuse the delay.

The Ombudsman's reasoning

The ombudsman found that UKI's policy terms clearly limited guarantees to 12 months for supplier work, and by offering a two-year guarantee, the supplier exceeded contractual requirements. The ombudsman rejected Mrs E's argument that the guarantee should match the drain repairs, finding that policy terms determine how claims are handled. While acknowledging Mrs E's disability and safety concerns, the ombudsman found no requirement in the policy or Equality Act 2010 for a longer guarantee. The cash settlement was deemed reasonable as it allowed Mrs E to seek alternative contractors. The ombudsman also found that Mrs E failed to meet the high threshold for exceptional circumstances to excuse the late complaint referral, as six months provided sufficient time to contact FOS despite her health difficulties and bereavement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website