Not upheld: claim decline and service failures complaint against Haven Insurance Company Limited
Financial Ombudsman decision DRN-6266986 of 2026-05-06T00:00:00+00:00. claim decline and service failures complaint against Haven Insurance Company Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6266986 |
|---|---|
| Decision date | 2026-05-06T00:00:00+00:00 |
| Firm | Haven Insurance Company Limited |
| Product | commercial motor insurance |
| Claim type | claim decline and service failures |
| Outcome | Not upheld |
| Remedy | Haven Insurance Company Limited must: (1) Pay Mr A the salvage money received from the car; (2) Pay Mr A simple interest using time-weighted average Bank of England base rate plus one percentage point on the salvage amount from the date received to settlement; (3) Pay Mr A £50 compensation for trouble and upset caused by the delay in providing the engineer report. |
Summary
Mr A claimed on his commercial motor insurance policy with Haven after his car caught fire. Haven declined the claim based on an exclusion for electrical faults, which an independent engineer confirmed was the cause. The ombudsman found the claim decline was reasonable and the car's category B total loss status meant it should not be returned. However, the ombudsman determined Haven should not profit from salvage when declining the claim and should compensate Mr A for service delays in providing the engineer report. The ombudsman ordered payment of salvage money, interest, and £50 compensation but did not uphold the complaint regarding the claim decline itself.
The Ombudsman's reasoning
The ombudsman found that Haven's reliance on the electrical fault exclusion was not unreasonable based on the independent engineer's assessment. The ombudsman agreed that returning a category B total loss vehicle to the customer was not necessary. However, the ombudsman determined it was unfair for Haven to profit from the salvage when declining the claim, and that the delay in providing the engineer report caused distress warranting compensation. The issue regarding continued premium charges was not considered as it had not been raised with Haven as a formal complaint.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Haven Insurance Company Limited, all decisions | 401 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website