Not upheld: unfair claim decline complaint against AXA Insurance UK PLC

Decision detail

Summary

Mr M claimed on his home insurance policy for damage to his handcycle sustained while riding on a woodland trail. AXA declined the claim, concluding the damage was caused by mechanical failure and prior repairs rather than a single insured event. The ombudsman upheld AXA's decision, finding that the damage did not constitute accidental damage under the policy as it was not a sudden, unexpected and unforeseen event, and that the policy exclusions for mechanical breakdown and faulty workmanship fairly applied given the damage occurred at the site of previous repairs.

The Ombudsman's reasoning

The ombudsman concluded that AXA fairly declined the claim because: (1) there was no insured peril as the damage did not result from a sudden, unexpected and unforeseen event - the handcycle was undergoing regular use on a trail it was designed for; (2) the policy exclusions for mechanical breakdown, faulty workmanship, and gradual damage fairly applied as the damage occurred at the site of previous repairs and welds; (3) it was unclear why the handcycle would have failed during normal use but for the existing repair/damage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website