Not upheld: claim settlement dispute and complaint handling complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr H complained to AXA about the handling of a buildings insurance claim following subsidence damage. After AXA accepted the claim and a settlement was reached, Mr H sought additional payment for a contingency fee and for newly discovered defective works he claimed resulted from AXA's failings. The ombudsman found the settlement agreement was clear and in full and final settlement, including a negligence waiver clause that Mr H had signed. The contingency fee issue had already been considered in a previous FOS decision and could not be revisited. The ombudsman did not uphold the complaint, finding it unreasonable to require AXA to increase the settlement for latent defects discovered after the settlement was agreed.

The Ombudsman's reasoning

The ombudsman found that the settlement agreement was clear and unambiguous, stating it was in full and final settlement of all claims arising from the subsidence damage. The settlement included a clause absolving AXA's agents of liability for negligence. Given the clarity of these terms and the circumstances leading to the settlement, the ombudsman found it most likely that Mr H was aware of what he was signing and that it brought the claim to a close. Latent defects discovered after settlement could not justify increasing the settlement amount. The contingency fee had already been considered in a previous complaint and could not be revisited. Regarding complaint handling, while receiving correspondence from AXA's agents rather than AXA directly may have been frustrating, it was not unreasonable and did not prevent Mr H from bringing his complaint to the ombudsman.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website