Not upheld: claim handling delays, unfair settlement practices, poor communication complaint against Society of Lloyd's (SOL)
Financial Ombudsman decision DRN-6297296 of 2026-04-20T00:00:00+00:00. claim handling delays, unfair settlement practices, poor communication complaint against Society of Lloyd's (SOL). Outcome: Not upheld.
Decision detail
| Reference | DRN-6297296 |
|---|---|
| Decision date | 2026-04-20T00:00:00+00:00 |
| Firm | Society of Lloyd's (SOL) |
| Product | possessions insurance |
| Claim type | claim handling delays, unfair settlement practices, poor communication |
| Outcome | Not upheld |
| Remedy | £600 total compensation (£100 offered in January 2025 and £500 offered in July 2025, with £500 already paid). Interim settlement payment for TV, bedding and clothing with 8% simple interest calculated from January 2025. Completion of any outstanding compensation payment of £100 if not already paid. |
Summary
Mr N claimed on his possessions insurance policy with SOL following water damage to his student accommodation in October 2024. SOL conducted a video inspection in December 2024 but subsequently missed items from Mr N's possessions list and initially offered refurbished items instead of new for old cover. SOL required inspection of outstanding possessions due to lack of proof of purchase and the vintage nature of some items, which caused delays and distress to Mr N. SOL offered £600 total compensation and interim settlement with 8% interest from January 2025. The ombudsman found SOL's approach fair and reasonable overall, not upholding the complaint despite acknowledging shortcomings in claim handling.
The Ombudsman's reasoning
The ombudsman found that SOL fairly applied its policy rights in requiring inspection of outstanding possessions, particularly given the lack of proof of purchase and the presence of vintage items. While acknowledging SOL's shortcomings—including delays in offering interim settlement (which should have been paid in January 2025) and initially offering refurbished items instead of new for old cover—the ombudsman considered these were appropriately addressed through the interim settlement with 8% simple interest from January 2025 and £600 total compensation. The ombudsman distinguished between distress caused by the insured event itself (water damage) and distress caused by SOL's handling, finding that SOL's compensation fairly addressed the latter.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Society of Lloyd's (SOL), all decisions | 2 | 0% |
Source
Read the original decision on the Financial Ombudsman Service website