Not upheld: Home insurance claim disputes complaint against Tesco Underwriting Limited

Decision detail

Summary

Mr K claimed on his motor insurance policy after being involved in an accident in May 2025 in a car that had been gifted to him by a family member seven days earlier. Tesco Underwriting Limited declined the claim after an investigation revealed that Mr K had not made any financial contributions towards the vehicle's purchase, that the family member who gifted the car was uncooperative with enquiries, and that there were inconsistencies in Mr K's account of the accident circumstances. The ombudsman found that Tesco's enquiries were proportionate and reasonable given the high value of the vehicle and the unusual circumstances, and that the evidence available did not sufficiently demonstrate Mr K's financial interest in the car. The complaint was not upheld and no compensation was awarded.

The Ombudsman's reasoning

The ombudsman found that Tesco's enquiries were proportionate and reasonable given the high value of the vehicle, the unusual circumstances of its purchase as a gift, and the lack of evidence that Mr K had made any financial contribution. While Mr K provided various documents, none demonstrated that he had acquired a financial interest in the car. The ombudsman accepted that informal family arrangements can occur but found that the evidence available to Tesco at the time did not sufficiently demonstrate such an arrangement. Additionally, the inconsistencies in Mr K's account of the accident circumstances, combined with evidence that the car was located near the accident site rather than at his home address, were reasonable concerns for Tesco to consider. The ombudsman concluded that Tesco's decision to decline the claim was based on reasonable grounds and that the investigation timescales were proportionate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website