Partially upheld: claim handling - poor communication and lack of proactive investigation complaint against Liverpool Victoria Insurance Company Limited

Decision detail

Summary

Mr H made a claim on his motor insurance policy following an accident, possibly caused by a medical emergency. His car was deemed a total loss and LV deducted the £500 policy excess from the settlement. Mr H also claimed for loss of earnings due to inability to work and for personal items missing from the car after recovery. LV correctly applied the policy excess and denied cover for medical conditions and loss of earnings, which were not covered under the policy. However, LV failed to proactively investigate missing personal possessions when first raised by Miss H, requiring her to make multiple calls and emails over two weeks. The ombudsman upheld the complaint in part, finding the £300 goodwill payment for personal possessions was fair but ordering an additional £200 compensation for the distress caused by LV's poor handling of the claim.

The Ombudsman's reasoning

The ombudsman considered whether LV acted in line with policy terms and fairly and reasonably. The £500 excess was clearly set out in policy documents and was correctly applied regardless of fault. The policy did not cover medical conditions, loss of earnings, or personal belongings, so these claims could not be upheld. However, LV's handling of the personal possessions claim was deficient. Although the £300 goodwill payment was fair, LV failed to proactively investigate the missing items when first raised by Miss H, requiring her to make multiple calls and emails over two weeks without receiving promised callbacks. This caused unnecessary distress during a difficult time when LV was aware of Mr H's hospitalization and Miss H's role as his representative.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website