Not upheld: claims handling and communication failure complaint against AXA Insurance UK Plc trading as Moja

Decision detail

Summary

Mr R complained that AXA mishandled a motor insurance claim after his MPV rolled into a third party's car in July 2025. Mr R had stated he intended to deal privately with the third party, but AXA settled a £4,000+ claim from the third party's insurer without informing him for 107 days. Mr R also lost his 20-year NCD. The ombudsman found that while AXA's communication was poor, the policy terms permitted AXA to handle and settle claims, and AXA had no reasonable prospects of defending the claim. The £100 compensation offered for inconvenience was fair and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while AXA failed to communicate with Mr R about the third party's claim, this communication failure did not alter the outcome. AXA's policy terms gave it the right to handle claims and settle them without policyholder approval. The third party's insurer would inevitably have sought recovery once the third party engaged her own insurer. AXA reasonably concluded it had no prospects of defending the claim and settled it appropriately. The NCD was protected, so a single claim in the policy year should not have damaged it. The £100 compensation for inconvenience was fair and in line with FOS guidelines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website