Not upheld: claims handling delay and failure to pursue recovery complaint against First Central Underwriting Limited

Decision detail

Summary

Mr S made a motor insurance claim in 2021 following an accident he believed was not his fault. First Central agreed liability lay with the third party but by January 2026 had still not recovered Mr S's excess from the third party insurer. Mr S complained about the delays and lack of progress, seeking return of his excess with interest and compensation. First Central admitted to insufficient chasing and paid £250 compensation. The ombudsman did not uphold the complaint, finding that while delays occurred, there was no evidence more proactive pursuit would have changed the outcome, and that the £250 compensation was fair and reasonable given the circumstances.

The Ombudsman's reasoning

The ombudsman acknowledged First Central's delays but found that: (1) the return of an excess is not guaranteed and depends on liability being fully established; (2) there was no evidence that more proactive chasing by First Central would have resulted in a different outcome; (3) the delays were not solely caused by First Central; (4) Mr S did not demonstrate significant ongoing impact throughout the 5-year period, having only complained in 2026; and (5) £250 was a fair and reasonable remedy for the acknowledged delays and inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website