Upheld: unjustified deduction from claim settlement and delayed payment complaint against AXA Insurance UK Plc
Financial Ombudsman decision DRN-6083276 of 2026-06-03T00:00:00+00:00. unjustified deduction from claim settlement and delayed payment complaint against AXA Insurance UK Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6083276 |
|---|---|
| Decision date | 2026-06-03T00:00:00+00:00 |
| Firm | AXA Insurance UK Plc |
| Product | Home insurance |
| Claim type | unjustified deduction from claim settlement and delayed payment |
| Outcome | Upheld |
| Remedy | AXA must pay £215.32 (£414.32 less £199 excess) plus 8% per annum simple interest from the date of final response letter to date of payment, plus £50 compensation for distress and inconvenience. AXA must provide tax deduction information if applicable. |
Summary
Mr M claimed for a damaged laptop under his home insurance policy with AXA. AXA offered £414.32 in settlement but proposed to deduct a £60 salvage fee and £199 excess. The ombudsman found AXA lacked compelling evidence for the salvage fee deduction and should have paid the settlement promptly. The complaint was upheld, requiring AXA to pay £215.32 plus interest at 8% per annum from the final response date, plus £50 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that AXA failed to provide compelling evidence to support its assertion that it would have received £60 from salvaging the damaged laptop. The ombudsman also determined that AXA should have paid the settlement amount when it issued its final response letter, and therefore interest was due. The unreasonable assertion about the salvage fee caused distress and inconvenience to Mr M.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| AXA Insurance UK Plc, all decisions | 3,715 | 34% |
| Home insurance, all decisions | 20,668 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website