Not upheld: claims handling - total loss declaration, valuation dispute, vehicle disposal, and communication with solicitor complaint against First Central Insurance Management Limited

Decision detail

Summary

Ms N complained about how First Central handled a motor insurance claim following damage to her car whilst being driven by a named driver. First Central declared the car a Category B total loss, provided a settlement valuation, and disposed of the vehicle approximately two months after the incident. Ms N disputed the valuation and later expressed interest in retaining the car through her solicitor, but this occurred after disposal. The ombudsman found First Central acted reasonably in declaring the total loss, increasing the valuation to the top guide amount, and disposing of the vehicle before Ms N expressed retention interest, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that First Central reasonably declared the car a total loss based on the engineer's report and industry practice. While the ombudsman acknowledged that ownership should not transfer until the consumer accepts payment, the car was disposed of before Ms N expressed interest in retention. Ms N had not demonstrated means to break up a Category B write-off or provided evidence of a higher valuation. First Central's request for the finance company's early settlement figure was reasonable and necessary to progress the claim. The solicitor's role was unclear, and Ms N and Mr R continued direct contact with First Central, making it reasonable for First Central to respond to their enquiries.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website