Not upheld: claims handling, service failures, inadequate compensation complaint against Liverpool Victoria Insurance Company Limited (LV)

Decision detail

Summary

Mr K complained about how LV handled his motor insurance claim following an accident, seeking £2,000 compensation for trouble, upset and disruption. His concerns included delays in repairs, faults with the returned car, poor communication, aggressive behaviour from an LV agent's staff member, and failure to provide a guaranteed hire car promptly. LV acknowledged failings and offered £750 total compensation, reimbursed repair costs, and initiated disciplinary action against the staff member. The ombudsman found LV's service was poor but its compensation was fair and reasonable, and did not uphold the complaint for an increase.

The Ombudsman's reasoning

The ombudsman applied the test of whether LV acted in line with policy terms and conditions and fairly and reasonably. While acknowledging multiple service failings, the ombudsman found that LV's remedial actions were appropriate: reimbursement for repair costs restored Mr K's position; compensation for communication failures and the aggressive behaviour incident were fair and reasonable in line with FOS guidance; regarding the hire car, the ombudsman found it more likely than not that Mr K declined the car when offered (based on his proactive communication style in other matters), so LV's offer of £100 compensation for the initial delay was fair. The ombudsman noted Mr K provided no medical evidence to support a claim for long-lasting harm from the aggressive behaviour.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website