Not upheld: unfair claim decline - application of policy exclusions complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr S claimed for theft of his car left at a friend's house for servicing. AXA declined the claim based on policy exclusions relating to loss when a car or keys are under the custody of non-covered persons. Mr S originally stated he had posted the keys through his friend's letterbox, but later revised his account claiming he had retained them. The ombudsman found AXA acted fairly in declining the claim, placing greater weight on the original statement provided near the time of loss and finding the revised statements lacked supporting evidence and contained inconsistencies. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the policy terms strictly and found that Mr S's own original account confirmed the car and keys were left in the custody of someone not covered under the policy, which fell within the stated exclusions. The ombudsman placed greater weight on Mr S's original statement as it was provided closer to the time of loss and therefore more likely to be accurate. The revised statements provided a month later contained significant inconsistencies and lacked supporting evidence, which reasonably raised concerns about the validity of the claim. The ombudsman concluded AXA acted fairly in declining the claim and maintaining that decision despite the revised accounts.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website