Not upheld: claims handling delays and service failures complaint against AXA Insurance UK Plc

Decision detail

Summary

Ms K complained about AXA Insurance's handling of her motorhome insurance claim following an accident. AXA's approved repairers and salvage agents initially misclassified the converted motorhome as a van and deemed it a total loss, causing significant delays. It took over 19 weeks before AXA decided the vehicle was economical to repair. Ms K sought a cash settlement, but AXA chose to have the vehicle repaired, which was within its contractual rights. AXA upheld the complaint and paid £750 compensation. The ombudsman found that while the delays and misclassification were unacceptable, AXA's decision to repair rather than pay cash was reasonable and the compensation award was appropriate.

The Ombudsman's reasoning

While AXA's delays were unacceptable and its agents' misclassification of the motorhome as a van was clearly wrong, AXA was entitled under the policy terms to decide how to settle the claim and chose repair over cash settlement, which was reasonable given the repair costs were less than half the vehicle's value. AXA's £750 compensation award was appropriate recognition of the service failures, delays, and loss of enjoyment over many months. The complaint about the hire car company referral was not AXA's responsibility as the hire company acted independently on a credit hire basis. Additional concerns raised after AXA's final response letter fell outside the scope of this decision as AXA had not been given the opportunity to formally respond to them.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website