Upheld: Motor insurance, claim handling complaint against Society of Lloyd's

Decision detail

Summary

Mr R claimed on his home insurance policy in July 2024 for water damage to his flat. Society of Lloyd's appointed a Loss Adjuster who directed the Loss Assessor to use a specific Structural Engineer to investigate structural integrity. Over 12 months passed with Mr R's bathroom remaining unusable while the Structural Engineer delayed providing its report. Society of Lloyd's initially offered £250 compensation but Mr R complained it was inadequate. The ombudsman upheld the complaint, finding Society of Lloyd's responsible for the Structural Engineer's delays because it had directed the appointment rather than merely suggesting it, and ordered compensation increased to £750 total.

The Ombudsman's reasoning

Although the Loss Assessor was contractually responsible for the Structural Engineer, Society of Lloyd's bore responsibility because it directed the appointment of that specific engineer rather than merely suggesting one. The Loss Assessor acted promptly in chasing for updates, so the delays were attributable to the Structural Engineer's failures. Since Society of Lloyd's made the decision to insist on this particular engineer, it became accountable for the consequences of that choice. The initial £250 compensation was insufficient given the significant distress and inconvenience caused by over 12 months of delays with the bathroom remaining unusable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website