Partially upheld: claim handling and poor communication complaint against Tradex Insurance Company PLC
Financial Ombudsman decision DRN-6293392 of 2026-06-04T00:00:00+00:00. claim handling and poor communication complaint against Tradex Insurance Company PLC. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6293392 |
|---|---|
| Decision date | 2026-06-04T00:00:00+00:00 |
| Firm | Tradex Insurance Company PLC |
| Product | Motor insurance |
| Claim type | claim handling and poor communication |
| Outcome | Partially upheld |
| Remedy | Tradex Insurance Company PLC must pay Ms L £200 compensation for distress and inconvenience caused by poor service. Payment must be made within 28 days of Ms L's acceptance of the final decision. If payment is late, interest accrues at 8% per annum simple rate from the date of the final decision to the date of payment. |
Summary
Ms L complained about Tradex Insurance's handling of her car insurance claim following a July 2025 incident with a third party vehicle. Tradex settled the claim on a 50/50 shared liability basis in November 2025, and Ms L also complained about poor communication during the claim process. The ombudsman found that Tradex's settlement decision was reasonable given the disputed accounts and limitations of the dashcam evidence, but upheld the complaint regarding the failure to communicate with Ms L for over two months. The ombudsman determined that Tradex's offer of £200 compensation for distress and inconvenience was fair and proportionate, and required payment within 28 days with interest if delayed.
The Ombudsman's reasoning
The ombudsman found that Tradex's decision to settle on a 50/50 liability basis was fair and reasonable given the disputed versions of events and the limitations of the available evidence. The dashcam footage, while helpful, did not provide clear-cut evidence that the third party was 100% responsible, as the point of impact was out of full shot and it was unclear whether Ms L had actually stopped at the moment of impact. The ombudsman noted that insurers can reasonably decide to settle claims on the best available terms rather than pursue matters to court if prospects for success are not strong. However, the ombudsman upheld the complaint regarding Tradex's poor communication, finding that the failure to update Ms L or request information for over two months caused distress and inconvenience. The £200 compensation offered was deemed fair and proportionate to the impact of the poor service, particularly as the outcome of the claim decision itself was not changed by the communication failures.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Tradex Insurance Company PLC, all decisions | 81 | 56% |
| Motor insurance, all decisions | 23,874 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website