Not upheld: claims handling delay, NCD communication clarity, service quality complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr A complained that AXA delayed resolving a false third-party claim made against his motor insurance policy, causing financial loss and distress, particularly as his policy was due to renew. Mr A also claimed AXA provided misleading information about his No Claims Discount being affected. The ombudsman found that AXA reasonably investigated and defended the claim based on the exact vehicle details provided, and that keeping the claim open while the third party pursued it was appropriate. The ombudsman was satisfied that AXA issued a clear NCD certificate confirming Mr A's protected eight-year NCD remained unaffected, and that the final response letter was not misleading. The complaint was not upheld, with the ombudsman concluding that much of Mr A's frustration was caused by the third party's claim, which was outside AXA's control.

The Ombudsman's reasoning

The ombudsman found that AXA had a reasonable obligation to investigate the third-party claim given it included Mr A's exact vehicle details, and that keeping the claim open while the third party pursued it was reasonable and in Mr A's best interests. The ombudsman was satisfied that AXA issued a clear NCD certificate confirming eight years' NCD protection remained intact, and that the final response letter's reference to 'reinstatement' was not misleading in context. While acknowledging Mr A's frustration, the ombudsman concluded that much of it was caused by the third party's claim, which was outside AXA's control, and that AXA's written communication about NCD was sufficiently clear.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website