Not upheld: service failure - provision of incorrect policy information and inadequate compensation complaint against Aviva Insurance Limited

Decision detail

Summary

Mr F complained to Aviva Insurance Limited after being incorrectly informed that a leaking hot water cylinder would be covered under his home emergency insurance policy. When Aviva's engineer visited, he correctly determined the specific valve was not covered, and Mr F had to arrange and pay for external repairs. Aviva acknowledged the service failure and offered £50 compensation, which Mr F considered inadequate and sought £650. The ombudsman did not uphold the complaint, finding that while the error caused frustration and inconvenience (including Mr F taking a Saturday off work), the £50 compensation was fair and reasonable given the one-off nature of the mistake, Aviva's prompt admission and correction, and the relatively short duration of the disruption.

The Ombudsman's reasoning

The ombudsman applied FOS guidance on compensation for administrative errors, noting that typically less than £100 is appropriate for one-off incidents. While acknowledging that an apology alone was insufficient given Mr F wasted a Saturday, the ombudsman found the error was isolated, promptly admitted, and the confusion was relatively short-lived (24 hours). The ombudsman noted Aviva's candid admission, prompt notification, and refund of the excess. Although Mr F experienced frustration and inconvenience, the ombudsman concluded this did not warrant compensation in a higher bracket.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website