Partially upheld: claims handling error; failure to complete payment before closing file; delay in addressing CCJ complaint against Admiral Insurance (Gibraltar) Limited
Financial Ombudsman decision DRN-6303575 of 2026-05-12T00:00:00+00:00. claims handling error; failure to complete payment before closing file; delay in addressing CCJ complaint against Admiral Insurance (Gibraltar) Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6303575 |
|---|---|
| Decision date | 2026-05-12T00:00:00+00:00 |
| Firm | Admiral Insurance (Gibraltar) Limited |
| Product | motor insurance |
| Claim type | claims handling error; failure to complete payment before closing file; delay in addressing CCJ |
| Outcome | Partially upheld |
| Remedy | Admiral must: (1) increase total compensation to £1,000 (additional £600 if £400 already paid); (2) reimburse court fees incurred via solicitors with 8% simple interest from date paid if Mr S paid them personally; (3) cover reasonable solicitor's costs directly incurred in securing CCJ cancellation and correcting the court record, with 8% simple interest from date paid if Mr S paid them, or pay the solicitor directly if unpaid. Admiral must not cover solicitor's costs for making the complaint or pursuing compensation. |
Summary
Mr S complained that Admiral Insurance's mistake in closing his motor insurance claim file before completing all third-party payments resulted in a county court judgment (CCJ) being issued against him for £5,838.95 on 12 May 2025. After discovering the CCJ, Mr S contacted Admiral but received contradictory information about payment status and cancellation efforts, prompting him to appoint a solicitor to ensure the CCJ was properly set aside within the one-month deadline. The ombudsman found Admiral's error directly caused the CCJ and upheld the complaint in part, requiring Admiral to increase compensation to £1,000, reimburse court fees, and cover reasonable solicitor's costs for CCJ cancellation and record correction, but rejected claims for lost earnings, ill-health, and wider losses as lacking sufficient evidence of direct causation.
The Ombudsman's reasoning
Admiral made a clear mistake by closing the claim file before all payments to the third party were completed, directly causing the CCJ to be issued. The CCJ caused Mr S substantial distress and worry, particularly given the tight one-month deadline for cancellation and Admiral's contradictory information. Mr S's decision to appoint a solicitor was reasonable given Admiral's previous false assurance that the matter was closed. The solicitor's costs for CCJ cancellation and record correction were directly caused by Admiral's errors and should be covered. However, claims for lost earnings lack sufficient evidence, the ill-health predated the CCJ, and the CCJ was properly set aside so wider losses did not materialize.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Admiral Insurance (Gibraltar) Limited, all decisions | 1,935 | 44% |
Source
Read the original decision on the Financial Ombudsman Service website