Not upheld: settlement valuation dispute and claim handling delays complaint against Lloyds Bank General Insurance Limited

Decision detail

Summary

Mr and Mrs T claimed for stolen jewellery under their contents insurance with LBG. While LBG accepted the claim, Mr T disputed the settlement values offered for certain items and complained about delays in handling the claim. LBG paid £604 in compensation for delays across three final responses but maintained its settlement valuations. The ombudsman found LBG's approach reasonable given that Mr T could not provide original purchase documentation (as it was stolen with the jewellery) and that LBG based its offers on available photographic evidence and expert opinion. The ombudsman did not uphold the complaint, finding both the settlement offers and compensation for delays to be fair in the circumstances.

The Ombudsman's reasoning

The ombudsman applied FCA rules requiring insurers to handle claims promptly and fairly (ICOBS 8.1.1). On delays, LBG's compensation of £300 was found reasonable and in line with FOS guidance. On settlement values, the ombudsman found LBG's approach reasonable because: (1) the policy required proof of value which Mr T could not provide; (2) LBG relied on available evidence (photos and expert opinion); (3) the photos provided limited clarity about the items' specifications; (4) LBG's offers were not at the lowest end of comparable prices; and (5) LBG offered to reconsider if further evidence was provided. The fact that LBG increased an offer for another item demonstrated willingness to reconsider, not flawed methodology.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website