Upheld: Service failures generally complaint against esure Insurance Company Limited

Decision detail

Summary

Mr W made a claim following an accident in July 2022 that was not his fault, caused by a chain collision. esure settled the claim but recorded it as NCD disallowed because it could not recover from any responsible party. When Mr W's other policy came up for renewal in September 2025, the premium increased by over £1,000 (230%), which Mr W attributed to the claim recording. The ombudsman upheld the complaint, finding that while the NCD disallowed recording was correct, esure failed to adequately explain this distinction and could not justify the substantial premium increase, warranting £100 compensation for distress and inconvenience.

The Ombudsman's reasoning

While esure correctly recorded the claim as NCD disallowed on CUE (the appropriate recording when recovery is not possible), it failed to clearly explain this distinction to Mr W, allowing him to believe it was recorded as a 'fault' claim. More significantly, esure could not justify the 230% premium increase on Mr W's other policy at renewal, having only suggested a 14% discount would have applied if the claim had been recorded as non-fault. The unjustified premium increase caused Mr W unnecessary distress and inconvenience, leading him to switch insurers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website