Upheld: poor service / administrative error / deficient validation process complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr C complained that AXA provided poor service when it incorrectly identified a claim on his motor insurance records that belonged to someone else with the same name. AXA's validation process only checked Mr C's name against the CUE database without cross-referencing his date of birth, address, or vehicle registration details it held on file. The error resulted in a threat of policy cancellation and placed the burden on Mr C to prove the claim was not his. Although the matter was resolved within six days, AXA did not acknowledge fault until three weeks later. The ombudsman upheld the complaint and required AXA to pay £300 total compensation for the distress and inconvenience caused by the deficient checking process and poor service.

The Ombudsman's reasoning

The ombudsman found that AXA's checking process was deficient because it only verified the customer's name against the CUE database without cross-referencing other identifying information it held on file. Although the policy was not ultimately cancelled and there was no financial impact to Mr C's premiums or terms, the threat of cancellation caused distress and placed the burden of proof on Mr C. The three-week delay in acknowledging fault, combined with the unnecessary stress of resolving the matter, constituted poor service warranting compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website