Not upheld: claim settlement dispute - quantum of loss complaint against Allianz Insurance Plc

Decision detail

Summary

S, an off-licence business, claimed £20,000 for cigarette stock stolen in a February 2022 break-in, but Allianz settled at £8,000 after investigating inconsistencies in S's evidence. S argued Allianz failed to properly assess gantry capacity and conduct a forensic review, and that the police report statement (£10,000-£15,000) was given under stress. The ombudsman upheld Allianz's approach, finding that S bore the onus to evidence its loss and that the available evidence (accounts, manufacturer estimates, purchase data) did not support the £20,000 claim. The settlement of £8,000 was found to be fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that while a valid theft claim existed, the onus was on S to evidence the loss claimed. The police report recording S's initial statement of £10,000-£15,000 loss was a reasonable starting point for investigation. S's subsequent evidence (accounts showing lower stock levels, manufacturer estimate based on assumption rather than documented analysis, and purchase data suggesting abnormally low sales would be needed to support £20,000 stock level) did not support the £20,000 claim. Allianz's analysis was appropriate and its £8,000 settlement offer was reasonable. No significant delay was identified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website