Upheld: unfair settlement valuation on total loss claim complaint against Acromas Insurance Company Limited
Financial Ombudsman decision DRN-6107388 of 2026-04-21T00:00:00+00:00. unfair settlement valuation on total loss claim complaint against Acromas Insurance Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6107388 |
|---|---|
| Decision date | 2026-04-21T00:00:00+00:00 |
| Firm | Acromas Insurance Company Limited |
| Product | insurance |
| Claim type | unfair settlement valuation on total loss claim |
| Outcome | Upheld |
| Remedy | Acromas Insurance Company Limited must pay Mr J £869 additional settlement (the difference between £24,903 and £25,772) plus interest at 8% simple per annum from the date of initial payment to the date of settlement. Acromas must provide a tax deduction certificate if requested. |
Summary
Mr J's car was flood damaged and declared a total loss. Acromas offered £24,903 in settlement, which Mr J disputed as undervaluing his vehicle given its low mileage and good condition. The ombudsman reviewed motor guide valuations and found the highest valuation was £25,772. Acromas had provided only an average of three guides and claimed one guide inflated prices without supporting evidence. The ombudsman upheld the complaint, requiring Acromas to pay the highest guide valuation of £25,772 plus interest, as Acromas failed to provide persuasive evidence justifying a lower settlement under the FOS approach for current market conditions.
The Ombudsman's reasoning
The ombudsman applied the FOS approach that in current used car market conditions with wider valuation ranges, insurers should pay the highest motor guide valuation unless they provide persuasive evidence supporting a lower amount. Acromas provided only an unsupported assertion about price inflation rather than concrete evidence such as comparable adverts or expert reports. The ombudsman found Acromas' offer of £24,903 (an average of three guides) was below the highest valuation and not justified by the evidence provided. Therefore, the fair starting point was the highest guide valuation of £25,772.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Acromas Insurance Company Limited, all decisions | 860 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website