Not upheld: claim settlement decision and communication failure complaint against Ageas Insurance Limited

Decision detail

Summary

Mr C complained to Ageas Insurance Limited about how it settled a third party claim following a motor accident where he reversed into another vehicle. Ageas settled the claim as a fault claim, resulting in Mr C losing his no claims discount and facing a significant premium increase at renewal. Mr C disputed fault and complained that he was not informed of the settlement decision until policy renewal. The ombudsman found Ageas's fault determination reasonable based on Mr C's duty of care while reversing, but upheld that Ageas should have communicated the decision earlier. The ombudsman deemed Ageas's offer of £300 compensation for poor communication appropriate and did not require further action.

The Ombudsman's reasoning

The ombudsman determined that Ageas had the contractual right to settle claims as it saw fit. As the party reversing, Mr C had a duty of care not to hit the other vehicle, making the fault decision reasonable regardless of the third party's proximity, lighting, or conduct. However, Ageas failed in its duty to communicate the settlement decision to Mr C when it was made, causing unnecessary distress when he discovered it at renewal.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website