Upheld: Account administration errors complaint against UK Insurance Limited trading as Churchill

Decision detail

Summary

Mr S complained that UKI incorrectly recorded a December 2023 accident claim as a fault claim instead of notification only, which impacted his renewal premiums when he changed insurer in October 2025. UKI's error resulted in the new insurer initially increasing Mr S's premium by £1,099.79. Although UKI corrected their database and CUE records on 7 November 2025, their poor communication with the new insurer about the claim status (only clarifying the no claims discount) led to continued confusion and a recalculated but still incorrect premium of £403.21. The ombudsman upheld the complaint and confirmed the investigator's award of £750 compensation, finding that while UKI discharged their responsibility to update their own records, their inadequate communication with the new insurer caused considerable frustration and inconvenience to Mr S.

The Ombudsman's reasoning

The ombudsman found that UKI made a clear error in recording the December 2023 claim as fault instead of notification only. While UKI corrected this relatively quickly and Mr S's premiums with UKI were unaffected, the error caused significant detriment when Mr S changed insurer in October 2025. The new insurer increased the premium substantially based on the incorrect information. Although UKI updated their records and CUE, their poor communication with the new insurer about the claim status (only clarifying the no claims discount, not the claim itself) led to continued confusion and frustration for Mr S, requiring him to make numerous calls to resolve the issue. The investigator's recommendation of £750 total compensation appropriately reflects the distress and inconvenience caused by these failures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website