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

Decision detail

Summary

Mr W complained about how UK Insurance Limited (UKI) recorded a motor insurance claim on the Claims and Underwriting Exchange (CUE) following an accident in April 2023. Although UKI voided Mr W's policy due to non-disclosure of penalty points, they settled the third-party's claim based on video footage showing Mr W pulling out from a parked position, recording it as 'no claims discount disallowed' on CUE. Mr W disputed liability and wanted it recorded as 'notification only'. The ombudsman found UKI acted fairly in conceding liability under Road Traffic Act obligations and in their CUE recording, concluding Mr W would be worse off if UKI had pursued other available remedies. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while UKI voided the policy due to non-disclosure of penalty points, they acted fairly in conceding liability based on video footage showing Mr W pulling out from a parked position into the path of the third-party's vehicle. The ombudsman was satisfied that UKI's decision to settle the third-party's claim was reasonable under Road Traffic Act obligations to reduce the risk of further costs and court judgments. The ombudsman concluded that recording the claim as 'no claims discount disallowed' was appropriate and that Mr W would be in a worse position if UKI had pursued other available remedies under the RTA.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website