Upheld: improper claims handling; excessive and unclear information requests; unreasonable barrier to claiming complaint against Accredited Insurance (Europe) Ltd

Decision detail

Summary

Ms C complained about Accredited Insurance's handling of her legal expenses insurance claim regarding a neighbour's fence allegedly encroaching on her property boundary. Accredited requested extensive information including title deeds, surveyor reports, and quotations, which Ms C found excessive and burdensome. Ms C subsequently obtained a surveyor's report in response to these requests. The ombudsman found that Accredited's information request was disproportionate, unclear, and created an unnecessary barrier to the claim, particularly as the claim was later referred to panel solicitors, indicating the initial information was sufficient. The ombudsman upheld the complaint and ordered Accredited to reimburse the surveyor's report cost and pay £150 compensation for the distress and delay caused.

The Ombudsman's reasoning

The ombudsman found that Accredited's information request was excessive, unclear, and not proportionate to the stage of the claim. The request was generic in nature and failed to acknowledge information already provided by Ms C. Critically, the claim was subsequently referred to panel solicitors, demonstrating that the initial information was sufficient for the first stage assessment. The ombudsman reasoned that if panel solicitors required additional information, they would request it themselves. The surveyor's report was obtained as a direct result of Accredited's unreasonable request, and Accredited should bear this cost regardless of the ultimate outcome, as either the report was unnecessary (due to the unreasonable request) or it was required for the legal assessment (for which Accredited is liable).

How this compares

Source

Read the original decision on the Financial Ombudsman Service website