Upheld: Home insurance claim disputes complaint against Aioi Nissay Dowa Insurance UK Limited

Decision detail

Summary

Mr W complained about how Aioi Nissay Dowa Insurance UK Limited handled his motor insurance claim after his car was damaged. UKL's approved repairer caused further damage during repairs, and UKL then caused six-week delays in authorizing Mr W's chosen repairer by requiring an engineer inspection to verify a ceramic coating that could have been identified from existing photographs. Mr W experienced significant emotional distress, embarrassment, and humiliation over several months, including feeling upset about driving the damaged car and being questioned by others. While UKL approved the repairs and offered £400 compensation, the ombudsman found this inadequate to reflect the emotional impact and upheld the complaint, requiring UKL to pay £800 total compensation.

The Ombudsman's reasoning

The ombudsman found that UKL failed to properly repair the car on the first occasion, causing further damage. UKL then caused unreasonable delays in authorizing Mr W's chosen repairer, including requiring an engineer inspection to verify a ceramic coating that could have been identified from photographs already in UKL's possession. The ombudsman noted that Mr W had clearly communicated his extreme distress, embarrassment, and stress over several months, including feeling humiliated about the car's condition and being questioned by others about the damage. While UKL's approval of repairs and £400 compensation reasonably restored Mr W's position materially, this did not adequately compensate for the emotional impact of the errors. The ombudsman determined that £800 total compensation was appropriate and in keeping with FOS guidance for the humiliation and stress caused over several months.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website