Is the award made by FOS binding on the firm?

The award made by the Financial Ombudsman Service (FOS) is binding on the firm if the customer accepts the award. In practice, this means that once a customer receives a decision from the FOS and agrees to it, the firm must adhere to the terms of that decision. This binding nature is designed to provide customers with a sense of resolution and ensure that they can rely on the outcome of the complaints process.

It's important to note that if the customer does not accept the award, or if the award is not accepted within the specified timeframe, it will not be binding on the firm. Therefore, the emphasis is on the customer's acceptance as the key factor that determines the binding effect of the FOS award on the insurance firm. This framework encourages fair play and accountability in the insurance sector while also empowering customers to have their grievances addressed effectively.