Not upheld: claims handling - lack of consultation and communication before settlement complaint against Advantage Insurance Company Limited

Decision detail

Summary

Miss M complained that Advantage Insurance settled a third-party car insurance claim without consulting her or considering her independent repair estimate of £180, instead using approved repairers at a cost of £895.99. She was unhappy about the lack of communication and the financial detriment caused by the higher settlement amount. The ombudsman found that Advantage acted fairly and reasonably in exercising its contractual right to settle the claim as fault through approved repairers, as the higher costs were justified by quality requirements and manufacturer parts standards. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that while Miss M desired consultation before settlement, Advantage acted fairly in exercising its contractual right to settle the claim as fault through approved repairers. The higher repair costs were justified by requirements for lasting and effective repairs using recognised manufacturer parts. The ombudsman accepted Advantage's data protection concerns as reasonable grounds for not providing a detailed cost breakdown. The fact that Miss M's premiums would be affected regardless of the settlement amount did not render Advantage's actions unfair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website