Upheld: poor claim handling, inadequate communication, failure to gather evidence, failure to pass evidence to legal representative complaint against UK Insurance Limited (trading as Churchill Insurance)
Financial Ombudsman decision DRN-6394986 of 2026-06-10T00:00:00+00:00. poor claim handling, inadequate communication, failure to gather evidence, failure to pass evidence to legal representative complaint against UK Insurance Limited (trading as Churchill Insurance). Outcome: Upheld.
Decision detail
| Reference | DRN-6394986 |
|---|---|
| Decision date | 2026-06-10T00:00:00+00:00 |
| Firm | UK Insurance Limited (trading as Churchill Insurance) |
| Product | Motor insurance |
| Claim type | poor claim handling, inadequate communication, failure to gather evidence, failure to pass evidence to legal representative |
| Outcome | Upheld |
| Remedy | £150 compensation for distress and inconvenience caused by UKI's poor claim handling and inadequate communications |
Summary
Mr M claimed on his Churchill motor insurance policy following a November 2023 accident. The other driver disputed liability and the matter proceeded to court in June 2025, where the court found Mr M fully liable. Mr M complained about UKI's handling of the claim, including failure to pass his photos to the solicitor, poor communication with only one contact over six months, and failure to request his statement until July 2024 when liability was disputed in December 2023. The ombudsman upheld the complaint regarding UKI's poor claim handling and communication, awarding £150 compensation, but could not overturn the court's liability decision or order reinstatement of the no claims bonus and excess refund. Legal representation issues were referred to the Legal Ombudsman.
The Ombudsman's reasoning
The ombudsman found that while the court's liability decision cannot be overturned and legal representation issues fall under Legal Ombudsman jurisdiction, UKI failed in its own responsibilities. Specifically: (1) UKI should have gathered more comprehensive information at the outset when liability was likely to be disputed; (2) UKI failed to pass Mr M's photos to its solicitor, which was poor practice; (3) UKI's communications with Mr M were inadequate, with only one contact between November 2023 and May 2024 despite Mr M's repeated attempts to get updates; (4) UKI should have requested Mr M's statement and photos in December 2023 when liability was first disputed, rather than waiting for the solicitor to request this in July 2024. These failures caused Mr M distress and inconvenience. However, the ombudsman could not order reinstatement of NCB, refund of excess, or recording as no-fault claim as these would flow from the court's liability finding.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| UK Insurance Limited (trading as Churchill Insurance), all decisions | 6 | 17% |
| Motor insurance, all decisions | 23,874 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website