Upheld: unfair claim settlement approach complaint against INTACT INSURANCE UK LIMITED
Financial Ombudsman decision DRN-6207277 of 2026-05-21T00:00:00+00:00. unfair claim settlement approach complaint against INTACT INSURANCE UK LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6207277 |
|---|---|
| Decision date | 2026-05-21T00:00:00+00:00 |
| Firm | INTACT INSURANCE UK LIMITED |
| Product | commercial vehicle insurance |
| Claim type | unfair claim settlement approach |
| Outcome | Upheld |
| Remedy | Intact to pay Mr J cash equivalent to its repair cost less VAT element. Upon completion of repairs, Intact to settle the VAT element either directly with the repairer or with Mr J, depending on arrangement, upon receipt of evidence of completion and VAT amount. Intact to pay the £150 compensation previously offered. |
Summary
Mr J claimed on his commercial vehicle insurance policy with Intact after his vehicle was damaged. Intact offered to repair the vehicle or allow Mr J to choose his own repairer, but refused Mr J's request for a cash in lieu of repairs settlement. Mr J complained about the settlement approach, delays in assessment, and the claims handler's tone. The ombudsman proposed a compromise: cash settlement at Intact's repair cost less VAT, with VAT payable upon completion of repairs with evidence. Intact agreed to this proposal and Mr J did not object. The ombudsman upheld the complaint and ordered Intact to settle on these terms, plus pay £150 compensation for delays and inappropriate tone.
The Ombudsman's reasoning
The ombudsman considered that Intact's initial refusal to offer a cash settlement was unreasonable given Mr J's circumstances and the impact on him. The investigator's recommendation for cash settlement at Intact's repair cost was reasonable. The ombudsman's proposal to settle in cash less VAT, with VAT payable upon completion of repairs with evidence, was fair because it addressed Intact's legitimate concerns that repairs might not be carried out while still providing Mr J with the flexibility and ease of a cash settlement. Since both parties agreed to this proposal (Intact explicitly and Mr J by not objecting), there was no reason to depart from it.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| INTACT INSURANCE UK LIMITED, all decisions | 201 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website