Not upheld: Motor insurance, claim handling complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr S claimed that AXA dealt with his motor insurance claim unfairly by refusing to provide a courtesy car after his damaged vehicle was deemed a total loss. AXA relied on policy terms explicitly excluding courtesy cars for write-offs and when repairs are not undertaken by approved repairers. Mr S argued the car should have been inspected before being deemed a total loss and that he should have received a courtesy car pending formal inspection. The ombudsman upheld AXA's position, finding the policy terms were clear and unambiguous, AXA could not inspect the vehicle while in police custody, and the car was not being repaired at an approved garage, so no courtesy car was due under the policy terms.

The Ombudsman's reasoning

The ombudsman applied FCA ICOBS 8.1 principles requiring fair and prompt claims handling. The policy terms were clear and unambiguous: courtesy cars are not provided for total loss claims or when repairs are not undertaken by approved repairers. Although Mr S argued the car should have been inspected before being deemed a total loss, the ombudsman found AXA could not instruct inspection while the car was in police custody. Even if the car had been inspected and deemed repairable, the courtesy car still would not have been provided as it was not being repaired at an approved garage. Therefore, AXA acted in accordance with the policy terms and did not act unreasonably.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website