Not upheld: settlement valuation and service quality complaint against Aviva Insurance Limited

Decision detail

Summary

Ms K complained about Aviva's settlement offer of £11,468 for her total loss car claim, believing her car was worth more given what she had paid for it and its short ownership period. She was also unhappy with poor service and delays in the claim process. Aviva acknowledged service failures and paid £200 compensation but declined to increase the settlement. The ombudsman found Aviva's valuation fair and reasonable as it exceeded the highest motor guide valuation of £11,251 and was supported by evidence of comparable vehicle prices. The £200 compensation for service issues was deemed appropriate, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman assessed whether Aviva's settlement was fair and reasonable by reference to motor guide valuations and FOS approach to car valuations. Aviva's offer of £11,468 exceeded the highest motor guide valuation of £11,251 and was supported by evidence of advertised prices for comparable vehicles. The ombudsman applied the principle that insurers should pay the highest valuation guide figure unless they provide evidence supporting a lower valuation. The £200 compensation for service failures was consistent with FOS published guidance on the impact caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website