Not upheld: Motor insurance, claim handling complaint against Alwyn Insurance Company Limited

Decision detail

Summary

Mr P complained that his motor insurer, Alwyn Insurance Company Limited, unfairly decided he was at fault for a road traffic accident and settled a third-party claim against his policy. Mr P had emerged from a side road and turned right onto a main road when he collided with a third-party vehicle. He provided CCTV footage which he believed showed he was not at fault and that the third party was speeding. Alwyn reviewed the footage and concluded Mr P was most likely at fault, settling the claim on a without prejudice basis. The ombudsman found Alwyn's decision was fair and reasonable based on the CCTV footage, which showed Mr P pulling out while the third-party vehicle was already approaching and Mr P slowing significantly while positioned in the third party's path. The ombudsman upheld Alwyn's interpretation that as a driver emerging from a side road, Mr P had a duty to give priority to oncoming traffic and that the claim would be unlikely to be successfully defended.

The Ombudsman's reasoning

The ombudsman determined that Alwyn's decision to settle the third-party claim was fair and reasonable based on a thorough review of the CCTV footage. The footage clearly showed Mr P pulling out from a side road while the third-party vehicle was already approaching, with Mr P slowing and then accelerating as the vehicle got closer. As a driver emerging from a side road, Mr P had a duty to give priority to oncoming traffic and ensure it was safe to proceed. The ombudsman found it reasonable for Alwyn to conclude the claim would be unlikely to be successfully defended and that settling it on a without prejudice basis was appropriate to avoid unnecessary costs. The ombudsman also found the one-day delay in responding to the complaint did not warrant compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website