Upheld: Service failures generally complaint against UK Insurance Limited
Financial Ombudsman decision DRN-6470281 of 2026-07-02T00:00:00+00:00. Service failures generally complaint against UK Insurance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6470281 |
|---|---|
| Decision date | 2026-07-02T00:00:00+00:00 |
| Firm | UK Insurance Limited |
| Product | Motor insurance |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | UKI required to: (1) Pay the cost of accident damage repairs with evidence of payment provided by Ms A; (2) Pay 8% simple interest on repair costs from one calendar month after claim date to date of payment; (3) Pay additional £200 compensation for stress, anxiety and disruption caused by the claims handling experience. |
Summary
Ms A claimed on her motor insurance policy after her van was involved in a multi-vehicle accident on 17 July 2025. UKI declined the claim on the grounds that the van was unroadworthy, citing defects found in the engineer's post-accident inspection including brake fluid issues, suspension problems, and a damaged seatbelt. However, the van had passed its MOT on 14 June 2025 with only a minor advisory, and Ms A had obtained repairs and a garage attestation of roadworthiness on 8 July 2025. The ombudsman found that a reasonable consumer would have relied on these factors to conclude the van was roadworthy and that UKI's decline was unfair. UKI was ordered to pay repair costs with 8% interest and an additional £200 compensation for the stress and disruption caused by delays and mixed messaging in the claims process.
The Ombudsman's reasoning
The ombudsman found that Ms A, as a reasonable consumer, would have reasonably concluded her van was roadworthy based on the passed MOT and garage attestations. Although the engineer's inspection revealed significant defects post-accident, the one-month gap between MOT and accident was not long enough to conclude the van's condition had degraded to the point that Ms A acted unreasonably. Ms A made good-faith attempts to maintain the van by obtaining repairs and passing MOT. Therefore, UKI's decline based on breach of the roadworthiness policy term was not fair or reasonable. The delays and mixed messaging warranted additional compensation beyond the initial £325 payment.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| UK Insurance Limited, all decisions | 6,642 | 31% |
| Service failures generally, all decisions | 34,229 | 32% |
| Motor insurance, all decisions | 24,148 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website