Not upheld: claim settlement decision and failure to communicate complaint against Aviva Insurance Limited

Decision detail

Summary

Mr S complained that Aviva settled a third-party claim against him without his knowledge, recording a fault that would affect his future premiums. Mr S believed his towbar could not have caused the damage and that the damage was pre-existing. Aviva had initially closed the claim as notification only but reopened it eight months later after the other driver's insurer made further contact, ultimately settling the claim and recording a fault. While the ombudsman found Aviva failed to communicate these developments to Mr S, it determined that Aviva reasonably investigated the claim using available evidence including an engineer's report and photographs showing damage consistent with a rear impact. The ombudsman upheld Aviva's right under the policy terms to settle the claim and found the £200 compensation already paid for poor communication to be fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that while Aviva failed in its duty to communicate with Mr S about reopening and settling the claim, it acted fairly and reasonably in investigating the claim and making its settlement decision. The engineer's report, photographs, and messages provided sufficient evidence of damage consistent with Mr S's towbar causing impact. Aviva was entitled under the policy terms to settle the claim to avoid further costs and legal action. The ombudsman noted that determining liability is a matter for the courts, not the FOS, and that insurers are entitled to make commercial decisions about whether to contest or compromise claims. The £200 compensation already paid was appropriate for the communication failures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website