Not upheld: unfair settlement offer and claim handling complaint against Domestic & General Insurance Plc

Decision detail

Summary

Mrs M claimed on her appliance insurance policy in October 2025 after her oven developed a fault. D&G offered a replacement oven, but Mrs M was unhappy with the specifications and preferred a more expensive successor model costing around £3,500. D&G offered a cash settlement of £1,901 and £135 compensation for inconvenience. Mrs M complained that the replacement oven lacked key features and that she had suffered significant hardship being without a functioning oven for approximately six months. The ombudsman reviewed the technical specifications of all three ovens and determined that D&G's offered model was suitable under the policy terms, as it had similar or superior technological specifications to the original. The ombudsman rejected the complaint, finding that D&G had acted fairly and reasonably.

The Ombudsman's reasoning

The ombudsman compared the technical specifications of all three ovens and determined that the model D&G offered was a suitable replacement in line with the policy terms requiring 'same or similar make and technical specification'. While Mrs M's preferred oven is the successor model, it contains features not present on her original oven, which would place her in a better position than before the damage occurred. The purpose of the insurance is to restore the policyholder to their pre-loss position, not to upgrade them. The ombudsman noted that D&G offered a cash settlement as an alternative, giving Mrs M the option to purchase an oven of her choosing. The £135 compensation was deemed reasonable for the acknowledged delay in the claim process.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website