Not upheld: claim handling dispute and fee rate disagreement complaint against Liverpool Victoria Insurance Company Limited

Decision detail

Summary

Mr P and Ms K complained to LV about the handling of a legal expenses insurance claim for an employment dispute and the hourly rate LV was willing to pay Mr P's solicitors. LV initially offered £100 per hour but increased this to £180 per hour plus VAT as a blended rate. Mr P's solicitors argued higher rates should apply based on the grade of fee earners used, but the ombudsman found the £180 rate reasonable under County Court guidelines. LV requested a copy of the settlement agreement to verify whether legal costs were already recovered, which Mr P refused to provide citing confidentiality. The ombudsman upheld LV's position that it was reasonable to request this information as a policy condition and found no basis to require LV to take further action.

The Ombudsman's reasoning

The ombudsman found that the £180 hourly rate offered by LV was reasonable as it represented a blended rate between Grade C and D fee earners under County Court guidelines, and Mr P's solicitors failed to evidence why higher-grade fee earners were necessary. The ombudsman also found it reasonable for LV to request the settlement agreement to verify whether legal costs had already been recovered, as this was a policy condition and the policy excluded recoverable legal expenses. While acknowledging some delays by LV, the ombudsman did not consider these significant enough to warrant additional remedy beyond the apology already provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website