Upheld: claim handling delay and lack of communication complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr B and Ms Z complained that AXA failed to settle liability on their motor insurance claim and unfairly recorded it as fault. Ms Z was involved in an incident in April 2023 where she believed the third-party was liable, but the third-party insurer did not accept liability, leaving the claim open. AXA acknowledged delays caused by its own inactivity and failure to promptly appoint legal representatives, and paid £275 in compensation. The ombudsman upheld the complaint and ordered an additional £250 compensation, finding that while open claims must be recorded as fault claims, AXA should have progressed the matter more promptly and provided better communication.

The Ombudsman's reasoning

While it is fair for an open claim to be recorded as bonus disallowed (fault) when liability is disputed, AXA should not unnecessarily delay settling the claim and should handle it promptly with appropriate progress updates. AXA accepted responsibility for delays within its control, including periods of inactivity and failure to send the claim to legal partners promptly. Although the ombudsman cannot direct AXA to reimburse the excess or recalculate premiums until third-party acceptance, the delays and lack of communication warrant additional compensation beyond what AXA had already paid.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website