Upheld: claims handling delay, poor communication, service failure complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr K complained that AXA's delay in handling a third party claim against him prevented him from obtaining insurance cover for his vehicle. AXA had passed the claim to its investigation unit and there was a delay in completing this investigation. Mr K's broker could not renew his policy due to changes in underwriting criteria and the end of its arrangement with AXA. The ombudsman upheld the complaint regarding AXA's failure to communicate clearly about the non-renewal and its failure to arrange promised underwriter contact, awarding £100 additional compensation. However, the ombudsman rejected the claim that the open claim prevented Mr K from obtaining insurance entirely, finding that open claims typically increase premiums rather than prevent quotes, and therefore the vehicle deterioration was not a direct result of AXA's delay.

The Ombudsman's reasoning

The ombudsman agreed with the investigator that AXA failed to communicate clearly about why it could not renew the policy, gave unhelpful speculation about the open claim affecting insurance availability, and failed to arrange promised underwriter contact. However, the ombudsman rejected the claim that the open claim prevented Mr K from obtaining insurance entirely, noting that open claims typically increase premiums rather than prevent quotes altogether. The ombudsman concluded the car being off the road was not a direct result of AXA's delay, as Mr K could have obtained insurance at a higher cost.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website