Not upheld: vehicle valuation dispute complaint against Haven Insurance Company Limited

Decision detail

Summary

Mr M claimed on his taxi insurance policy following a fire. Haven initially offered £9,500 but increased this to approximately £15,000 after receiving further information from Mr M. Dissatisfied, Mr M complained that the vehicle was worth significantly more. Haven had used valuation guides initially, then arranged an engineer's report when these proved inaccurate. The ombudsman found that Haven's valuation was supported by the engineer's evidence and comparable market data, and that the adverts Mr M provided were not representative of his vehicle. The ombudsman also found the claim processing delays were reasonable given the non-standard nature of the vehicle. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the FCA rules requiring insurers to deal with claims promptly and fairly. The policy defined market value as the cost of replacing the taxi with one of similar make, model, specification, age, mileage and condition. The ombudsman found that Haven's valuation of £15,000 was supported by the engineer's evidence and that the adverts Mr M provided were not comparable as they related to vehicles with lower mileage and/or different specifications. The ombudsman was satisfied that Mr M could replace the vehicle for the amount offered. Regarding delays, the ombudsman found them reasonable given the non-standard nature of the vehicle requiring an in-depth review.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website