Upheld: claims handling delays and settlement fairness complaint against Aviva Insurance Limited
Financial Ombudsman decision DRN-6312210 of 2026-05-05T00:00:00+00:00. claims handling delays and settlement fairness complaint against Aviva Insurance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6312210 |
|---|---|
| Decision date | 2026-05-05T00:00:00+00:00 |
| Firm | Aviva Insurance Limited |
| Product | commercial property insurance |
| Claim type | claims handling delays and settlement fairness |
| Outcome | Upheld |
| Remedy | Aviva must: (1) increase compensation for distress and inconvenience to £1,000 total; (2) reimburse £500 expert report fee plus 8% simple interest from 9 July 2024 to date of payment; (3) pay cash settlement of £13,000 less policy excess; (4) provide decision on loss of rent claim if not already done |
Summary
Mr L complained about Aviva's handling of a subsidence claim on his commercial property, which had first shown problems in 2006 and recurred in 2021. Aviva offered a cash settlement of £13,000 and £750 compensation for delays, but Mr L was unhappy with the settlement amount, the withdrawal of the £500 expert report fee reimbursement, and the unresolved loss of rent claim. The ombudsman upheld the complaint, directing Aviva to pay the cash settlement, increase compensation to £1,000, reimburse the £500 report fee with interest, and provide a decision on the loss of rent claim. The ombudsman found the cash settlement fair and the compensation appropriate given the acknowledged delays, though subsidence claims inherently require lengthy monitoring periods.
The Ombudsman's reasoning
The ombudsman found that subsidence claims requiring monitoring periods inevitably take a long time, so the overall handling was not unreasonable. However, Aviva accepted there were some periods of delay which caused frustration and inconvenience to Mr L. The cash settlement was based on a fair estimate and Mr L had previously confirmed he wanted to accept it. The £500 expert report fee should be reimbursed as Mr L obtained it on the basis Aviva would cover it. Compensation of £1,000 was appropriate given the delay periods and inconvenience caused. The loss of rent claim was still being assessed when the final response was issued, so it could not be decided in this complaint.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Aviva Insurance Limited, all decisions | 5,098 | 27% |
Source
Read the original decision on the Financial Ombudsman Service website