Not upheld: claims handling - fault recording and MIB eligibility advice complaint against Aviva Insurance Limited

Decision detail

Summary

Mr C complained about Aviva's handling of a motor insurance claim following an accident involving his son. The third party's details were not obtained at the scene, and Aviva subsequently recorded the claim as 'fault' and advised that the MIB could not assist. Mr C disputed this, noting that solicitors had indicated claimants could make their own MIB claims. The ombudsman found that Aviva acted fairly by recording the claim as 'fault' (standard practice when unable to recover costs), that its MIB advice was accurate for insured losses, and that the £100 compensation for poor communication was reasonable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Aviva acted in accordance with standard industry practice and the policy terms by recording the claim as 'fault' when unable to recover its outlay from the third party. The term 'fault' in insurance context refers to non-recovery of costs, not actual blame. The advice regarding the MIB was accurate because Mr C's vehicle damage claim was an insured loss, not an uninsured loss covered by the MIB scheme. The solicitors' advice to Mr C's son about claiming uninsured losses to the MIB was a separate matter and did not contradict Aviva's advice. The £100 compensation for poor communication was reasonable as it addressed only the delay in updating Mr C, not the outcome of the claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website