Financial & Legal Insurance Company Ltd · DRN-6048344

The complaint Ms M complains about the way Financial & Legal Insurance Company Ltd (F&L) handled a claim on her breakdown insurance policy. Any reference to F&L includes any agents or representatives appointed to handle any part of the claim or policy on their behalf, unless otherwise stated. What happened The details of this complaint are well-known to the parties, so I won’t repeat them again. Instead, I’ll focus on the reasons for my decision. What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. F&L acknowledged their errors, upheld Ms M’s complaint, and offered to remove the cancellation charge, refund the policy premiums and reimburse her costs for the external breakdown assistance she arranged, if proof of payment is received. They also offered £100 compensation as an apology. The Investigator thought the case should be upheld and directed F&L to reimburse Ms M for the breakdown assistance costs and premiums as previously offered but thought a £500 compensation payment was more appropriate for the level of worry and distress Ms M and her children experienced. F&L disagreed with the Investigator’s decision, stating that Ms M received the service she was entitled to. They said, ‘For tyre claims there is no mention of National Recovery or Onward Travel. So the consumer has no entitlement to these services.’ They also disputed the award for the refund of premiums, on the basis that Ms M has made a claim on the breakdown insurance and received services from the policy. I agree with the Investigator’s view and think F&L need to go further than their offer of £100 compensation. This is for the following key reasons: • Ms M claimed on her breakdown insurance with F&L, and the policy booklet says she was entitled to have a recovery operative replace the wheel with her spare, replace the tyre or bring the car to the nearest garage if that was not possible. • The recovery operative’s tool broke and they had to leave to find a new tool or a different operative. They gave assurances to Ms M that she would get a repair or transport to a garage. F&L have unfairly taken the departure without repair as a cancellation and incorrectly tried to charge Ms M a £120 cancellation fee. Their decision to only help Ms M on a paid basis after that was unfair, as the recovery operative only left due to a broken tool. • F&L left Ms M without the assistance she was entitled to, as the recovery operative did not return and a replacement was not booked. F&L repeatedly gave her incorrect information and wrongly tried to apply a cancellation charge when she tried to call and resolve this. This led to her children becoming increasingly distressed and even

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soiled as the night progressed, and eventually she had to arrange her own assistance. In conclusion, I am upholding this complaint. I find that F&L’s offer of £100 compensation is inadequate for the seriousness of their errors, and £500 more accurately represents the level of impact on Ms M and her children. I also think it’s fair for F&L to reimburse Ms M for any external breakdown assistance she arranged, as she incurred those costs because of the issues detailed above. I understand F&L have already offered to refund Ms M’s premiums in their final response, and as they have made this offer, I will direct them to honour it. My final decision My final decision is that I uphold this complaint. I direct Financial & Legal Insurance Company Ltd to pay Ms M: • £500 compensation for the distress, worry and discomfort caused by leaving her without the assistance she was entitled to and the poor customer journey she experienced throughout. • The cost of any external breakdown assistance she arranged because of this incident. She will need to provide F&L with proof of payment. • 8% simple interest on the above breakdown assistance costs. This should be calculated from the date that Ms M paid for the breakdown assistance to the date F&L reimburses her. • A refund of premiums for this policy (if it has not already been paid). Under the rules of the Financial Ombudsman Service, I’m required to ask Ms M to accept or reject my decision before 24 April 2026. Joshua Clement Ombudsman

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