Not upheld: claim settlement decision and liability determination complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr B complained that AXA Insurance improperly settled his motor insurance claim on a 50/50 split liability basis when he believed dashcam footage showed the other driver was fully at fault. He also objected to paying half his £900 policy excess and complained about poor communication. The ombudsman found that AXA was entitled under the policy terms to settle the claim as it saw fit, had reasonably investigated by reviewing the dashcam footage and other evidence, and made a fair commercial decision to compromise to avoid litigation costs. The ombudsman upheld AXA's decision to retain the £450 excess payment as appropriate for a 50/50 liability split and found the £50 compensation for communication failures was adequate.

The Ombudsman's reasoning

The ombudsman found that AXA was entitled under the policy terms and conditions to settle the claim as it saw fit without Mr B's consent. The ombudsman confirmed that AXA reasonably investigated the claim by reviewing the dashcam footage, considering both drivers' versions of events, and examining road images. Although Mr B disputed AXA's interpretation that the other driver was avoiding a ditch, the ombudsman was satisfied that AXA had reviewed the footage and explained its decision. The 50/50 settlement was a reasonable commercial decision to avoid litigation costs. The £450 excess refund was appropriate as AXA recovered half its costs from the other insurer. The £50 compensation for communication failures was fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website