Not upheld: Motor insurance, claim handling complaint against UK Insurance Limited

Decision detail

Summary

Mrs L complained that UKI unfairly handled her flood insurance claim, disputing the settlement offered and claiming UKI refused to cover food costs and contents despite having policy limits. UKI offered £9,373.06 for buildings repairs, £12,000 for alternative accommodation (covering six months despite only four to six weeks being needed), and £5,000 compensation, plus had paid £1,100 in food costs for a household member not staying at the property. The Ombudsman found that while UKI's claim handling was poor and caused significant distress, the total compensation package was fair and reasonable, substantially exceeding typical FOS awards, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The Ombudsman found that while UKI's handling of the claim fell significantly short of its obligations to handle claims promptly and fairly, the total compensation offered (£5,000 plus an effective overpayment of £8,000-£9,000 in alternative accommodation costs plus £1,100 in food costs not recouped) was far in excess of what the FOS would typically award for such failures. The buildings settlement was supported by expert evidence, and even accepting Mrs L's food cost claims of £2,200, the overall compensation package was so substantial that no further payment was warranted.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website