Upheld: incorrect excess information, claim delays, inadequate compensation complaint against AXA Insurance UK Plc

Decision detail

Summary

Miss E and Mr S complained that AXA provided incorrect information about their insurance excess (stating £100 instead of the correct £500) and caused delays in their water damage claim. AXA acknowledged the mistakes and offered £100 compensation, but the complainants rejected this, arguing they should not pay additional excess given the extended claim process and their financial difficulties. The ombudsman upheld the complaint, finding that the cumulative effect of multiple issues over more than a year warranted £200 compensation, which when offset against the excess demand, reduced their outstanding payment to £200 to be collected via a reasonable payment plan.

The Ombudsman's reasoning

The ombudsman found AXA made two key mistakes: providing incorrect excess information (£100 instead of £500) and causing delays with the carpet contractor appointment. While the ombudsman could not review the detail of previous time-barred complaints, they found that the cumulative effect of multiple issues over more than a year, combined with the loss of expectation regarding the excess payment, warranted higher compensation than the £100 offered. The ombudsman rejected AXA's argument that there was no pattern or cumulative impact, finding that frustration and distress naturally accumulate as more issues occur.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website