Upheld: Service failures generally complaint against Liberty Mutual Insurance Europe SE
Financial Ombudsman decision DRN-4783213 of 2024-05-16T00:00:00+00:00. Service failures generally complaint against Liberty Mutual Insurance Europe SE. Outcome: Upheld.
Decision detail
| Reference | DRN-4783213 |
|---|---|
| Decision date | 2024-05-16T00:00:00+00:00 |
| Firm | Liberty Mutual Insurance Europe SE |
| Product | Other regulated product |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | Liberty Mutual to pay Mr D £100 compensation for service failings. Liberty Mutual entitled to pursue the matter as proposed: instruct Solicitors to write to current neighbours and initiate dialogue; if access cannot be restored and Mr D remains prevented from using garage, consider paying indemnity for loss in value of property. |
Summary
Mr D complained about how Liberty Mutual handled his access indemnity insurance claim following obstruction to his garage by neighbours' parking. The policy was designed to protect against loss of vehicular access due to a defect in title. After intermittent obstructions from June 2022 and the sale of the neighbouring property to new owners who now park in front of his garage, Mr D sought compensation for loss of access. Liberty Mutual accepted service failings in their handling but proposed to engage the neighbours before determining if a claim was payable. The ombudsman upheld the complaint regarding service failings and awarded £100 compensation, but rejected the claim for loss of access compensation as the policy trigger (explicit establishment of ownership preventing access) had not been satisfied.
The Ombudsman's reasoning
The ombudsman found that while Liberty Mutual's service fell below expected standards and they should have been more responsive and proactive, their light-touch approach was justified because the policy trigger had not been satisfied. The policy requires that another person establish ownership of AND prevent access. Although there were intermittent obstructions, no one had explicitly established ownership of the right of access to trigger a claim. The ombudsman agreed that Liberty Mutual's proposed course of action (engaging neighbours to resolve informally, then determining if a claim is payable) was reasonable and within their policy discretion. The ombudsman could not determine if the policy engages without knowing the neighbours' position.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Liberty Mutual Insurance Europe SE, all decisions | 46 | 32% |
| Service failures generally, all decisions | 32,767 | 33% |
| Other regulated product, all decisions | 51,105 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website