Upheld: claims handling - failure to provide replacement vehicle and inadequate assistance during repair delay complaint against Watford Insurance Company Europe Limited

Decision detail

Summary

Mr N claimed on his van insurance policy with Watford following an accident. Although the claim was accepted and repairs were completed, the repairs took two months due to a parts delay that was not Watford's fault. Mr N was unhappy that he was not provided with a replacement van during the repairs and suffered loss of income as a result. The ombudsman upheld the complaint, finding that whilst replacement vehicles were not covered under the policy and the delay was not Watford's fault, Watford should have done more to help Mr N by arranging a replacement vehicle or returning the van whilst awaiting parts, given his stated financial need and the minor nature of the damage. Watford was directed to assess and pay Mr N's loss of earnings for the relevant period and pay £200 for distress and inconvenience.

The Ombudsman's reasoning

Although the repair delay was not Watford's fault and replacement vehicles were not covered under the policy terms, the ombudsman found that Watford should have acted to deliver good outcomes for the retail customer. Given that Mr N had informed Watford of his financial need, the damage was minor, and the van remained roadworthy, Watford could have arranged a replacement vehicle or returned the van whilst awaiting parts. The ombudsman also considered that Mr N was under significant financial pressure and received confusing information about the repair timeline.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website