Not upheld: claims handling delay and settlement procedures complaint against AXA Insurance UK Plc trading as Swiftcover

Decision detail

Summary

Mr D complained about AXA's handling of a motor insurance claim settlement following a court case decided in his favour in June 2025. The claim had been disputed by the third party, requiring legal proceedings that took over three years to resolve. After the court decision, AXA refunded Mr D's additional premiums paid during the open claim period with 8% simple interest, but there was a delay of approximately two months before the refunds were made. Mr D had previously received £350 compensation for poor communication during the legal proceedings. The ombudsman found AXA's procedures and timelines were reasonable given the need to wait for solicitor confirmation and third party insurer payment, and upheld AXA's offer of £75 compensation for the refund delays.

The Ombudsman's reasoning

The ombudsman found that AXA was not responsible for the third party insurer's denial of liability, which necessitated court proceedings. While the legal action kept the claim 'open' and affected renewal premiums, AXA's procedures and processes for handling the refunds after the court decision were reasonable, albeit slower than Mr D would have preferred. The ombudsman noted that AXA was chasing progress regularly and had legitimate procedures to follow, including waiting for confirmation from solicitors that costs were recovered before refunding Mr D. The delay from mid-June to end of August 2025 for the refunds, while not ideal, did not constitute unfair treatment given the circumstances. The £75 compensation already offered for these delays was deemed fair and reasonable under FOS compensation guidelines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website