Not upheld: Service failures generally complaint against Aviva UK Digital Limited
Financial Ombudsman decision DRN-2579918 of 2021-02-15T00:00:00+00:00. Service failures generally complaint against Aviva UK Digital Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-2579918 |
|---|---|
| Decision date | 2021-02-15T00:00:00+00:00 |
| Firm | Aviva UK Digital Limited |
| Product | Motor insurance |
| Claim type | Service failures generally |
| Outcome | Not upheld |
| Remedy | None - complaint not upheld |
Summary
Mr K complained that Aviva unfairly increased his motor insurance premium by £19.99 and charged fees to amend his policy. Aviva demonstrated that the premium was calculated automatically using its established criteria and that the £19.99 represented a pro-rata premium increase rather than an administration fee. The ombudsman found that Aviva treated Mr K fairly and consistently with other customers, and therefore did not uphold the complaint.
The Ombudsman's reasoning
The ombudsman applied the principle that while insurers have discretion in setting premiums, they must treat customers fairly. The ombudsman was satisfied that Aviva's premium was calculated correctly using its established criteria, applied automatically and consistently. The £19.99 charge represented a legitimate pro-rata premium adjustment rather than an improper administration fee, and Mr K received no less favourable treatment than comparable customers.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Aviva UK Digital Limited, all decisions | 8 | 12% |
| Service failures generally, all decisions | 32,767 | 33% |
| Motor insurance, all decisions | 24,036 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website