Partially upheld: Motor insurance, claim handling complaint against Allianz Global Corporate & Specialty SE

Decision detail

Summary

H, a peer-to-peer loans company, complained that Allianz delayed settling a business protection insurance claim for a property development loan that was not repaid. The claim was notified in January 2024 and settlement was confirmed in October 2024, with payment in December 2024. While the ombudsman found delays occurred between July and September 2024 where Allianz took insufficient action to pursue the claim, H failed to demonstrate that it suffered a financial loss as a result. The policy provided £150,000 cover for loss of interest, and H's argument about lost reinvestment opportunity related to investor losses rather than H's own losses. The complaint was partially upheld with £200 compensation awarded for inconvenience caused by the delays.

The Ombudsman's reasoning

The ombudsman found that while there was some delay in settling the claim (particularly between July and September 2024), H failed to demonstrate a financial loss suffered by H itself as a result of the delay. The policy provided cover for loss of interest (£150,000 was paid), and H's argument about lost reinvestment opportunity related to losses suffered by investors, not H. Under DISP Rules, interest can only be awarded where a money award is made and financial loss is demonstrated. However, the delay did cause inconvenience to H in dealing with the claim, warranting compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website