Upheld: delays and poor service in claims handling; inadequate communication complaint against AmTrust Specialty Limited

Decision detail

Summary

Mr and Mrs P complained about delays and poor service by AmTrust Specialty Limited in handling a legal expenses insurance claim for possession proceedings against a tenant. The claim was made in December 2021 and involved a contested court case that extended into 2025, with issues regarding deposit recovery. AmTrust initially offered £200 compensation; the investigator recommended £300. The ombudsman upheld the complaint at the £300 level, finding that while the claim duration was lengthy and frustrating, most delays resulted from the court process rather than AmTrust's actions. Only minor avoidable delays by AmTrust were identified, justifying modest compensation for cumulative distress and inconvenience.

The Ombudsman's reasoning

The ombudsman distinguished between delays caused by the underlying contested legal dispute (which were the solicitors' responsibility) and delays caused by AmTrust itself. While the overall claim duration was lengthy (December 2021 to early 2025), most of this was attributable to the court process rather than AmTrust's handling. AmTrust's responsibility was limited to keeping oversight, obtaining updates, and responding to policyholder concerns. Only a few minor avoidable delays by AmTrust were identified: some correspondence delays in February-March 2022, a two-week delay in cost authorisation in June 2022, and a delay between September-October 2024. These minor delays would have added to frustration over time but did not materially affect the claim outcome.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website