Not upheld: Motor insurance, claim handling complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr K complained that AXA was taking too long to settle his motor insurance claim following car damage in July 2022, and refused to pay storage costs while the car remained undrivable. AXA had deemed the car uneconomical to repair, and refused to settle because the named driver had not cooperated in providing incident information and had initiated litigation against AXA. AXA also refused storage costs because Mr K chose a non-approved repairer instead of using AXA's approved repairer, despite being warned of the consequences. The ombudsman found AXA's policy terms gave them full control over claims and that they exercised this control fairly by clearly communicating their reasons and having legitimate grounds (pending litigation and non-cooperation) for their decisions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that AXA's policy terms gave them full control over claims, including settlement decisions, and this is a fair and standard term. While AXA must exercise this control fairly and reasonably, the ombudsman concluded they did so by: (1) having legitimate reasons for not settling (pending litigation and named driver non-cooperation which were central to defending the claim); (2) clearly communicating these reasons to Mr K; and (3) fairly refusing storage costs since Mr K chose a NAR after being warned of the consequences. The ombudsman rejected Mr K's argument that the named driver's non-cooperation should be separate from his entitlement as policyholder, finding these matters central to AXA's ability to defend the litigation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website