Not upheld: claims handling - refusal to fund claim and refusal to allow choice of solicitor complaint against UK Insurance Limited

Decision detail

Summary

Mrs J complained that UKI Insurance Limited unfairly refused to fund her legal expenses insurance claim for a will dispute based on a panel firm's assessment that it was disproportionate to pursue. She argued UKI should have allowed her to choose her own solicitor and that the panel firm's advice was wrong because she later achieved a settlement with a 'no win no fee' solicitor. The ombudsman found UKI acted reasonably in relying on the panel firm's properly written and reasoned legal assessment from a suitably qualified lawyer. The ombudsman rejected Mrs J's argument that the early settlement proved the assessment wrong, noting proportionality should be assessed on the basis of contested court proceedings. The ombudsman also found Mrs J had no contractual right to choose her own solicitor at that stage and that UKI correctly offered to reconsider if she obtained a positive legal opinion. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found it was reasonable for UKI to rely on the panel firm's properly written and reasoned legal assessment from a suitably qualified lawyer specialising in disputed wills. The fact that the matter later settled early does not undermine the proportionality assessment, which should be based on the assumption of a contested court hearing. Mrs J did not have the right to choose her own solicitor because legal proceedings were not yet necessary and UKI had not accepted cover was in place. UKI correctly offered to reconsider if Mrs J obtained a positive legal opinion challenging the assessment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website