Partially upheld: delay in claims handling and poor communication complaint against Aviva Insurance Limited

Decision detail

Summary

Mr K complained that Aviva delayed pursuing his uninsured losses (policy excesses and VAT) following a motor insurance claim and failed to communicate progress. After a court judgment in November 2024 found in favour of Mr K and Aviva, the third-party insurer's liability remained unresolved as of February 2025. The ombudsman found that while uninsured losses fall outside policy coverage and recovery is primarily the solicitors' responsibility, Aviva failed to provide adequate communication and had unexplained delays in re-instructing solicitors. The ombudsman upheld the complaint in part, ordering Aviva to pay £200 for poor service and confirming that once liability is resolved, Aviva must restore Mr K's no claims discount.

The Ombudsman's reasoning

While the ombudsman found that uninsured losses (excesses and VAT) fall outside the policy terms and recovery is primarily the solicitors' responsibility, Aviva failed to provide adequate communication and progress updates to Mr K. There were unexplained delays in re-instructing the solicitors following the November 2024 court judgment. The ombudsman determined that once liability is resolved, Aviva should restore Mr K's no claims discount in accordance with policy terms. However, as liability had not been resolved by February 2025, it was not unfair for Aviva to direct Mr K to the solicitors at that stage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website