Partially upheld: Motor insurance, total loss valuation complaint against Tradex Insurance Company Limited
Financial Ombudsman decision DRN-4770279 of 2024-06-27T00:00:00+00:00. Motor insurance, total loss valuation complaint against Tradex Insurance Company Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-4770279 |
|---|---|
| Decision date | 2024-06-27T00:00:00+00:00 |
| Firm | Tradex Insurance Company Limited |
| Product | Other regulated product |
| Claim type | Motor insurance, total loss valuation |
| Outcome | Partially upheld |
| Remedy | Pay £1,030 as difference in market value settlement. Pay interest on this amount at 8% simple interest per annum from June 2023 settlement date to payment date. Payment required within 28 days of Mr K's acceptance of the decision, with further 8% interest if paid later. |
Summary
Mr K claimed on his motor trade insurance policy after his car was stolen from a repair garage. Tradex paid £5,100 market value but Mr K disputed this and sought reimbursement for pre-theft repair costs. The ombudsman found Tradex had undervalued the car compared to motor trade guides showing valuations of £5,511 to £6,130. The complaint was partially upheld: Tradex must pay £1,030 additional compensation plus 8% interest from June 2023, but repair costs were rejected as maintenance expenses and claim delays were deemed reasonable. Tradex had also paid £50 compensation for failing to respond to an email.
The Ombudsman's reasoning
The ombudsman checked the main motor trade guides and found Tradex's valuation of £5,100 was below the range of comparable valuations (£5,511 to £6,130). Following FOS approach, the higher valuation was deemed fairer given the significant gap between the lower and higher valuations. Repair costs are maintenance expenses not covered under the policy. Claim delays were reasonable given Tradex's investigations into theft circumstances. Interest on the valuation difference compensates for loss of funds during the settlement period.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Tradex Insurance Company Limited, all decisions | 65 | 31% |
| Motor insurance, total loss valuation, all decisions | 3,418 | 34% |
| Other regulated product, all decisions | 51,105 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website