Not upheld: Home insurance claim disputes complaint against ARAG Legal Expenses Insurance Company Limited
Financial Ombudsman decision DRN-6366458 of 2026-07-02T00:00:00+00:00. Home insurance claim disputes complaint against ARAG Legal Expenses Insurance Company Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6366458 |
|---|---|
| Decision date | 2026-07-02T00:00:00+00:00 |
| Firm | ARAG Legal Expenses Insurance Company Limited |
| Product | Other regulated product |
| Claim type | Home insurance claim disputes |
| Outcome | Not upheld |
| Remedy | ARAG to pay £300 compensation (if not already paid) to recognize the impact of delays and service failures on Mr M. |
Summary
Mr M complained about ARAG's handling of his legal expenses insurance claim relating to his 2015 dismissal, including delays in progressing the claim, conflicting information provided, a four-month delay in authorizing a barrister review, and failure to inform him of the barrister request. The ombudsman found ARAG had caused delays and avoidable distress but determined that the £300 compensation already offered was fair and adequate to remedy the impact, taking into account Mr M's significant mental health conditions. Regarding a separate 2015 claim that was declined, the ombudsman found insufficient evidence to determine if it was wrongly rejected but noted ARAG's agreement to obtain a new legal opinion was an appropriate remedy.
The Ombudsman's reasoning
The ombudsman acknowledged that ARAG had caused delays in progressing the claim and in responding to Mr M's communications, particularly the four-month delay in authorizing the barrister review and the failure to inform Mr M of the request. However, the ombudsman found that the compensation of £300 already offered by ARAG was adequate to recognize the impact of these delays and the avoidable distress and inconvenience caused, taking into account Mr M's significant mental health conditions. Regarding the 2015 claim, the ombudsman found insufficient evidence to determine whether ARAG had acted correctly in declining it, but noted that ARAG's agreement to obtain a new legal opinion was an appropriate remedy for any potential failing.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| ARAG Legal Expenses Insurance Company Limited, all decisions | 105 | 26% |
| Home insurance claim disputes, all decisions | 24,376 | 38% |
| Other regulated product, all decisions | 51,462 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website