Can my insurer put a claim on my policy just because it cost them to investigate?

My insurer investigated a claim someone had put in against me and turned it down flat. However, they've put a no fault claim on my policy. When I queried this they said it had cost them money to investigate the claim and hence the claim on my policy. Can this be right?

Asked on 30 May 2017 by Brian Temple

Answered by Honest John

No, complete rubbish. Raise a complaint and take it to the Financial Ombudsman Service. You should not be in any position of detriment as a result of someone trying to commit fraud against you. Advise the insurer that they should be claiming this cost from the person who tried to claim off you under what is called a "vexatious" claim. Complaint to the FOS www.financial-ombudsman.org.uk/consumer/complaints...m

Tags: legal advice insurance claims insurance consumer advice no fault accident ombudsman insurance fraud

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