Not upheld: claims handling, vehicle valuation, service failures, failure to accommodate disability complaint against UK Insurance Limited (UKI)

Decision detail

Summary

Mr W complained to the Financial Ombudsman Service about UK Insurance Limited's handling of his motor insurance claim following an accident. The main dispute concerned UKI's valuation of his car at £13,693 as a total loss, which Mr W believed was significantly undervalued given the repairs and upgrades he had made. UKI also failed to initially record Mr W's cognitive disability and asked him to resubmit evidence multiple times, for which it paid £350 compensation. The ombudsman found that UKI's valuation was fair as it exceeded the highest trade guide valuation, that repairs and standard features do not increase vehicle value, and that the £350 compensation was reasonable for the service failures acknowledged. The complaint was not upheld and no further action was required.

The Ombudsman's reasoning

The ombudsman applied the principle that the starting point for settlement should be the highest trade guide valuation, then assessed whether UKI's offer was fair and reasonable. UKI's valuation of £13,693 exceeded the highest trade guide figure of £12,931, so it was fair. The ombudsman rejected Mr W's arguments that repairs, aftermarket modifications, and free supercharging increased value, finding these were either maintenance expenses or standard features. The ombudsman also found that UKI's service failures, while acknowledged, were appropriately addressed through the £350 compensation already paid, which was in line with similar cases.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website