Upheld: Motor insurance, claim handling complaint against Extracover Limited
Financial Ombudsman decision DRN-6432129 of 2026-07-06T00:00:00+00:00. Motor insurance, claim handling complaint against Extracover Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6432129 |
|---|---|
| Decision date | 2026-07-06T00:00:00+00:00 |
| Firm | Extracover Limited |
| Product | Other regulated product |
| Claim type | Motor insurance, claim handling |
| Outcome | Upheld |
| Remedy | Extracover Limited must: (1) Amend the claim record both internally and on CUE to notification only; (2) Recalculate Mr J's premiums since the incorrect claim record was recorded and refund any overpaid premiums; (3) Pay Mr J 8% simple interest on the refund from the date of premium payment to the date of refund, with appropriate tax deduction documentation if required. |
Summary
Mr J complained that Extracover Limited incorrectly recorded his motorcycle damage claim as a fault claim, resulting in increased premiums. Although Extracover initially claimed the claim was recorded as notification only, CUE database evidence confirmed it was recorded as a fault claim with Mr J's no claims bonus disallowed. When the investigator challenged this, Extracover confirmed the fault claim recording but did not dispute its incorrectness. The ombudsman upheld the complaint, finding the claim was recorded incorrectly and ordering Extracover to amend the record, recalculate premiums, and refund any overpaid amounts with 8% simple interest.
The Ombudsman's reasoning
The ombudsman found that the claim was recorded incorrectly as a fault claim when it should have been recorded as notification only. The CUE database evidence contradicted Extracover's initial assertion that the claim was recorded as notification only. Extracover's failure to dispute the incorrect recording when challenged by the investigator, combined with the evidence that Mr J's premiums were affected by the fault claim designation, established that Extracover had treated the claim unfairly.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Extracover Limited, all decisions | 26 | 54% |
| Motor insurance, claim handling, all decisions | 12,930 | 33% |
| Other regulated product, all decisions | 51,462 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website