Upheld: poor claim handling, delays, inadequate compensation complaint against Haven Insurance Company Limited

Decision detail

Summary

Mr M claimed on his commercial vehicle insurance policy with Haven following an accident. After repairs, he discovered performance issues and a snapped timing belt. Haven accepted its service was substandard due to delays and poor communication, but disputed responsibility for the timing belt failure. The ombudsman upheld the complaint regarding poor service and awarded £500 compensation for distress and inconvenience. However, the timing belt failure was determined to be due to wear and tear on a vehicle over six years old, not Haven's fault, and no loss of earnings could be awarded without evidence.

The Ombudsman's reasoning

Haven breached FCA rules requiring insurers to deal with claims promptly and fairly. The service provided was substandard with delays and poor communication causing Mr M considerable distress, upset and worry over several months. However, the timing belt failure was most likely due to wear and tear given the van's age (over six years) and lack of previous replacement, not Haven's fault. The vehicle being left stationary may have highlighted the age and wear but was not the principal factor. No loss of earnings can be awarded without evidence of actual loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website