Upheld: erroneous policy cancellation and inadequate compensation complaint against One Call Insurance Services Limited trading as One Click
Financial Ombudsman decision DRN-6386244 of 2026-06-11T00:00:00+00:00. erroneous policy cancellation and inadequate compensation complaint against One Call Insurance Services Limited trading as One Click. Outcome: Upheld.
Decision detail
| Reference | DRN-6386244 |
|---|---|
| Decision date | 2026-06-11T00:00:00+00:00 |
| Firm | One Call Insurance Services Limited trading as One Click |
| Product | Motor insurance |
| Claim type | erroneous policy cancellation and inadequate compensation |
| Outcome | Upheld |
| Remedy | One Click must: (1) Reimburse the cost of Miss V's temporary insurance policies; (2) Reimburse the difference between the cost of Miss V's policy with One Click and the new policy she purchased; (3) Pay 4.5% simple annual interest on these sums from the dates of payment to the dates of reimbursement; (4) Pay Miss V £500 compensation for distress and inconvenience caused by the incorrect cancellation (inclusive of the £150 previously offered). |
Summary
Miss V purchased motor insurance through One Click which was incorrectly cancelled on 28 January 2026 after an advisor erroneously added a claim to her policy when she had only sought advice about an incident. Miss V, who is self-employed and requires a car for field-based work, had to purchase temporary insurance and a new policy at higher cost. One Click initially offered £150 compensation, but Miss V complained to the FOS. The ombudsman upheld the complaint, finding that One Click's notification was unclear and they missed opportunities to resolve the matter. The ombudsman required One Click to reimburse temporary insurance costs, reimburse the premium difference, pay interest at 4.5%, and pay £500 compensation for distress and inconvenience, finding this appropriate given Miss V's loss of business opportunities and damage to her professional reputation.
The Ombudsman's reasoning
The ombudsman accepted that One Click made an error in cancelling Miss V's policy and that this error was avoidable. The ombudsman found that the email notification sent on 21 January 2026 was not sufficiently clear for a consumer without detailed insurance knowledge to understand the urgency and risk of cancellation, making it reasonable for Miss V to wait for the letter before contacting One Click. The ombudsman noted that One Click missed opportunities to resolve the situation, such as contacting insurers directly to verify no claim had been made or offering to reinstate the policy. The ombudsman considered that Miss V, as a self-employed person with field-based work, suffered genuine inconvenience and potential loss of business due to the cancellation, and that the time spent resolving the matter impacted her ability to work and potentially damaged her professional reputation. The ombudsman determined that £500 compensation was appropriate to reflect the distress and inconvenience caused.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| One Call Insurance Services Limited trading as One Click, all decisions | 2 | 50% |
| Motor insurance, all decisions | 23,874 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website