Not upheld: claim valuation dispute complaint against MSIG Europe SE

Decision detail

Summary

Mr S, Mrs S and Mr S claimed for damage to a telehandler under their commercial motor insurance policy with MSIG Europe SE following a fire. MSIG valued the telehandler at £65,000, but the claimants paid £69,000 to replace it and disputed the valuation. The ombudsman found that MSIG's valuation was fair and in accordance with the policy terms, as comparable vehicles were available at or near £65,000, meaning the claimants could have replaced the vehicle for this amount had they shopped around. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the policy definition of market value, which requires payment of the cost to replace the vehicle in an open and fair market with one of the same specification and condition. Although the claimants paid £69,000 for their replacement, the ombudsman found that comparable vehicles were available at or near the £65,000 valuation, demonstrating that the claimants could have replaced the vehicle for this amount had they shopped around, even if they had to wait for availability.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website