Not upheld: incorrect recording of vehicle as total loss; administrative error complaint against Ageas Insurance Limited

Decision detail

Summary

Mrs C complained that Ageas Insurance incorrectly recorded her vehicle as a Category S total loss in 2022 following a damage claim. She only discovered this marker in 2026 when attempting to part-exchange the vehicle and received only £425 instead of approximately £1,325. Ageas accepted the error, removed the marker promptly, and paid £750 compensation, but refused to compensate for the lost vehicle value. The ombudsman did not uphold the complaint, finding Ageas's response reasonable and determining that Mrs C could have discovered the marker before selling the vehicle by reviewing her claim history.

The Ombudsman's reasoning

The ombudsman found that while Ageas made an error, its response was reasonable: it removed the marker promptly and offered £750 compensation for distress. The ombudsman rejected the claim for additional compensation for lost vehicle value on two grounds: (1) Mrs C could have reasonably discovered the marker before selling the vehicle by reviewing her claim history, and (2) there was insufficient evidence that she would have received £900 more without the marker. The ombudsman considered the £750 compensation generous and adequate to cover both distress and a contribution to the decreased settlement value.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website