Upheld: claims handling - failure to remove theft marker complaint against Aviva Insurance Limited

Decision detail

Summary

Mrs R claimed on her Aviva motor insurance policy in September 2022 after her vehicle was stolen. The vehicle was recovered undamaged in October 2022 and she withdrew the claim. However, Aviva failed to remove the theft marker from the vehicle's external database record, which Mrs R discovered in February 2025 when attempting to sell the vehicle. Mrs R complained that the marker prevented the initial sale and increased subsequent insurance premiums with other insurers. Aviva accepted it acted unfairly and offered compensation. The ombudsman upheld the complaint, finding the £225 compensation fair for the distress and inconvenience caused, but rejected claims for premium increases as there was insufficient evidence the marker actually affected subsequent insurance costs.

The Ombudsman's reasoning

Aviva accepted it acted unfairly by not removing the theft marker soon after the vehicle was recovered and the claim was withdrawn in October 2022. While a theft marker can potentially increase insurance premiums, the ombudsman was not persuaded this occurred in Mrs R's circumstances. One subsequent insurer confirmed it did not identify the vehicle as having a theft marker when calculating premiums, and no evidence demonstrated the marker affected other insurers' premium calculations. The ombudsman accepted Aviva's actions caused distress and inconvenience and impacted the initial sale attempt, making £225 compensation fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website