THE Financial Services Ombudsman is investigating the actions of a leading insurance company over a life-changing accident to a York man.

A medical report states Michael Collins, 44, is very unlikely to ever recover fully from the head injuries he received while working as a sewer technician for City of York Council in 2003. He believes he was short-changed in the compensation he received from the council because of the actions of the council’s insurers, Zurich Insurance. The company denies this. Mr Collins spent four years on sick leave before a settlement was agreed. Shortly afterwards, he was dismissed on grounds of ill-health.

At a subsequent employment tribunal hearing, Employment Judge Lancaster said the delay in deciding his future was a “deliberate tactic” by either the council or its insurers, and that the council’s insurers, Zurich Insurance, wanted the compensation award made before the dismissal. “If it had become apparent before they came to settle the personal injury claim that Mr Collins was not going to be able to work, it would have had an impact on the damages that were payable to him,” the judge said.

He also said the council’s preferred option was to decide Mr Collins’ future quickly.

The medical report which led to Mr Collins’ dismissal said he was highly unlikely to ever recover sufficiently to work again.

Mr Collins, of Leicester Way, off Walmgate, said: “The rest of my life, I am on benefits. I have got another 20 years working life.

“Whatever wages I would have got, I have lost a substantial amount of money for the rest of my life.”

He has now called in the ombudsman.

A spokesman for Zurich Insurance said after checking its files: “We can find absolutely no evidence to indicate or suggest that Mr Collins was dealt with unfairly or not in accordance with appropriate procedures for settlement of these cases.”

The spokesman added: “We can find no evidence to support the allegations made in the Employment Judge’s judgment and would remind Mr Collins of his right to pursue legal assistance if he believes he has not been treated fairly or justly.”

Both the company and the council have pointed out Mr Collins was represented by lawyers and his union during the compensation negotiations.

If the ombudsman decides Mr Collins has lost out, he could order the company to pay up to £100,000 or he could order some other dispute resolution. The ombudsman does not comment on ongoing cases.