Not upheld: claim settlement and handling; premium increase due to open claim complaint against AXA Insurance UK Plc

Decision detail

Summary

M, a limited company, complained about AXA's handling of a motor fleet insurance claim arising from a road traffic accident where M's employee's vehicle collided with car B, which had itself collided with car C. AXA accepted liability for the damage caused by M's vehicle and set reserves accordingly. When the policy renewed with the claim still open, the premium increased significantly from approximately £22,000 to over £40,000. M disputed the extent of damage claimed and argued AXA had not conducted the claim with due diligence. The ombudsman found that AXA had properly considered all evidence, obtained expert assessment confirming repair costs were reasonable, and acted in line with standard insurance practice by setting reserves and recording the claim as open. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that AXA properly exercised its contractual discretion to settle the claim by considering all available evidence and obtaining expert assessment. Although M's driver sustained minimal damage, the video evidence clearly showed the impact was sufficient to cause significant damage to car B and car C. The ombudsman rejected arguments about pre-existing damage to the courtesy car as unsupported speculation. Setting reserves to reflect potential claim costs and recording the claim as open is standard practice and does not constitute unreasonable conduct, even though this affected renewal premiums.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website