Not upheld: liability decision and claim settlement fairness complaint against Liverpool Victoria Insurance Company Limited

Decision detail

Summary

Mrs P complained about LV's decision to accept liability following an accident where her named driver was pulling away from a parking space when hit from behind by a van. LV concluded the named driver was at fault based on Highway Code provisions and lack of independent evidence supporting the driver's account. The investigator recommended upholding the complaint, but the ombudsman found LV had conducted a reasonable investigation and was entitled to settle the claim fairly. The ombudsman clarified that its role is to assess the insurer's decision-making process, not determine actual fault, and found LV acted reasonably in accepting liability.

The Ombudsman's reasoning

The ombudsman's role is not to determine fault but to assess whether the insurer acted fairly and reasonably in making its liability decision. LV was entitled under the policy terms to settle claims. The ombudsman found LV conducted a reasonable investigation by obtaining the named driver's account and considering available evidence. Given the Highway Code provisions and lack of independent evidence supporting the named driver's version, LV's conclusion that it would be unlikely to successfully defend the matter in court was reasonable. Therefore, LV acted fairly in accepting liability.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website