Not upheld: Home insurance claim disputes complaint against Tradex Insurance Company Limited

Decision detail

Summary

Mr H claimed on his motor insurance policy with Tradex after his car was damaged in November 2022. Tradex requested further evidence about his circumstances and car ownership, and conducted investigations involving third parties. Unable to validate the information to its satisfaction, Tradex declined the claim. Mr H complained about the time taken and non-settlement, seeking compensation for lost earnings and distress. The ombudsman found Tradex acted fairly and reasonably in its validation process and claim decline, noting that insurers have a duty to validate claims and policyholders must cooperate by providing necessary information.

The Ombudsman's reasoning

The ombudsman determined that it is the insurer's responsibility to validate claims and the policyholder's responsibility to cooperate and provide necessary information. Tradex's reasons for investigating the circumstances of car purchase were fair, the timescales used were reasonable, and the decision to decline the claim when unable to validate information to its satisfaction was not unfair. The ombudsman noted that Tradex indicated willingness to review any further information supplied in future.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website