Not upheld: claims handling - valuation, courtesy car provision, premium refund, and recording of historic claims complaint against First Central Underwriting Limited
Financial Ombudsman decision DRN-6323951 of 2026-05-27T00:00:00+00:00. claims handling - valuation, courtesy car provision, premium refund, and recording of historic claims complaint against First Central Underwriting Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6323951 |
|---|---|
| Decision date | 2026-05-27T00:00:00+00:00 |
| Firm | First Central Underwriting Limited |
| Product | motor insurance |
| Claim type | claims handling - valuation, courtesy car provision, premium refund, and recording of historic claims |
| Outcome | Not upheld |
| Remedy | No additional remedy ordered. The £350 compensation already paid by First Central was deemed fair and reasonable. |
Summary
Miss I complained about First Central's handling of a motor insurance claim following damage to her car in April 2025. Her complaints included the car valuation (£2,846), failure to provide a courtesy car, an inadequate premium refund (£300 instead of approximately £900), and the recording of historic claims. First Central upheld the complaint in part and paid £350 compensation. The ombudsman found that First Central's valuation was fair and based on reliable motor valuation guides, that Miss I had no contractual entitlement to a courtesy car despite the firm creating a reasonable expectation, that the premium refund was consistent with the firm's underwriting practices, and that historic claims were recorded in accordance with industry requirements. The ombudsman concluded the complaint was not upheld and the £350 compensation already paid was reasonable.
The Ombudsman's reasoning
The ombudsman applied the policy terms as the starting point, finding that First Central's valuation of £2,846 aligned with motor valuation guides and was more persuasive than Miss I's evidence of a similar car with significantly less mileage. Regarding the courtesy car, while First Central created a reasonable expectation, Miss I had no contractual entitlement under the policy terms. For the premium refund, the ombudsman reviewed First Central's commercially sensitive underwriting algorithms and found the refund was consistent with how other customers in similar circumstances would be treated. The historic claims were recorded fairly in accordance with CUE database requirements and industry practice. The ombudsman concluded that while service errors occurred, they were limited in scope and impact, and the £350 compensation already paid was reasonable and consistent with FOS award bands.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| First Central Underwriting Limited, all decisions | 207 | 42% |
Source
Read the original decision on the Financial Ombudsman Service website