Partially upheld: claim handling, poor communication, liability decision complaint against First Central Underwriting Limited

Decision detail

Summary

Miss M complained about First Central's handling of her motor insurance claim following a May 2025 accident. First Central initially indicated the other party was responsible but later proposed a 50/50 liability settlement, which was upheld by arbitration. Miss M subsequently provided additional evidence (GPS data and photographs) and complained about poor communication and lack of updates. The ombudsman found the 50/50 liability decision was fair and reasonable, and the additional evidence would not have changed the outcome, but upheld the complaint regarding communication failures and awarded £250 compensation for service deficiencies.

The Ombudsman's reasoning

The ombudsman found that while First Central was entitled under the policy to defend or settle claims on Miss M's behalf, they must act reasonably in doing so. The arbitrator's 50/50 decision was reasonable and based on specialist knowledge. The additional evidence Miss M provided (GPS video and engineer's report) would not have changed the liability outcome as the core dispute was differing accounts of events, not physical damage patterns. However, First Central failed in their duty to keep Miss M properly informed throughout the process and could have been more proactive in explaining the claim handling from the outset, causing unnecessary distress.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website