Partially upheld: Home insurance claim disputes complaint against AXA Insurance Designated Activity Company

Decision detail

Summary

Mr M complained that AXA handled his motor insurance claim poorly, resulting in a gap in his insurance cover and increased premiums. After being hit from behind in August 2023 and not found at-fault, AXA initially reduced his no-claims discount to zero but later reinstated it in June 2024. However, the claim remained open because the third-party insurer delayed payment of AXA's costs until October 2024. Mr M's new insurer applied a mid-term premium increase in October due to the open claim status, which he could not afford, resulting in a gap in coverage from June to September 2024. The ombudsman upheld the complaint in part, finding AXA not responsible for the gap or increased costs, as these resulted from the third-party insurer's delays and Mr M's affordability issues, not AXA's actions. AXA was ordered to pay £250 compensation already offered.

The Ombudsman's reasoning

The ombudsman found that while AXA could have sent an earlier reminder to the third-party insurer, the primary cause of delay in claim settlement was the third-party insurer's failure to pay, not AXA's actions. AXA appropriately reinstated Mr M's NCD in June 2024 and provided documentation. The new insurer's decision to apply a mid-term premium increase was based on the claim being open at that time, which was not AXA's responsibility. Mr M's decision not to take insurance due to affordability resulted in the gap in cover, not AXA's actions. The ombudsman concluded AXA acted reasonably in the circumstances and was not responsible for Mr M's increased costs or insurance gap.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website