Not upheld: third party claim handling, failure to communicate, liability decision complaint against Liverpool Victoria Insurance Company Limited

Decision detail

Summary

Mr M complained that LV failed to inform him of a third party claim against his car insurance policy following a reversing incident in a car park in June 2024. LV settled the third party claim and recorded it as a fault claim without discussing it with Mr M, who only discovered this almost a year later at renewal. Mr M disputed liability and claimed LV did not properly investigate or give him the opportunity to defend the claim. LV acknowledged the communication failure and paid £250 compensation. The ombudsman found that while LV's communication was inadequate, its liability decision was reasonable based on Mr M being the party performing the higher-risk reversing manoeuvre, and that the decision would likely have been the same with proper communication. The complaint was not upheld and no additional remedy was ordered.

The Ombudsman's reasoning

The ombudsman acknowledged that LV failed in its duty to communicate with Mr M about the third party claim and did not obtain his evidence before deciding liability. However, the ombudsman found that LV's liability decision was reasonable based on the circumstances: Mr M was performing the more risky reversing manoeuvre and had a higher duty of care to ensure it was clear. Although Mr M disputes the damage claimed, he does not dispute the impact occurred or that he was reversing. The ombudsman concluded that even with proper communication, LV would likely have reached the same liability decision. Therefore, the fault claim record should not be removed, and the £250 compensation already paid was adequate for the distress and inconvenience caused by poor service.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website