Not upheld: Motor insurance, claim handling complaint against Aioi Nissay Dowa Insurance UK Limited

Decision detail

Summary

Mr B complained that Aioi Nissay Dowa failed to pursue recovery of costs following a hit-and-run accident where the driver could not be identified. Although the insurer settled Mr B's total loss claim promptly, recovery efforts from the third party insurer were unsuccessful because the driver was never identified and the vehicle owner refused to cooperate. After obtaining legal advice confirming no viable defendant existed, Aioi Nissay Dowa concluded recovery was impossible and recorded the claim as a fault incident. Mr B was unhappy with this outcome as it affected his no claims discount and premiums, and felt the firm had abandoned recovery efforts prematurely. The ombudsman found that Aioi Nissay Dowa handled the claim fairly and in line with regulatory requirements, pursuing recovery over many months and obtaining legal advice before reaching its decision.

The Ombudsman's reasoning

The ombudsman found that Aioi Nissay Dowa's policy terms entitled it to decide how best to deal with the claim. The firm handled the claim promptly, pursued recovery efforts over many months, engaged with the TPI and police, obtained legal advice, and only concluded recovery was impossible when the driver could not be identified and the TPI refused to provide indemnity. The ombudsman noted that insurers are not required to exhaust all possible legal avenues before finalising a claim, and that recording a fault claim was fair and in line with industry practice given the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website