Not upheld: claim handling delays and poor service complaint against Zurich Insurance PLC

Decision detail

Summary

E, a limited company leaseholder, held a commercial property insurance policy with Zurich and made a claim for property damage in October 2022. After complaints about delays and poor handling, Zurich paid £400 compensation in September 2023 and offered a further £600 in March 2025. E remained unhappy with the overall settlement and referred the complaint to the FOS. The ombudsman found evidence of avoidable delays and poor service from September 2023 onwards that caused substantial inconvenience, but determined the £600 compensation was fair and reasonable within the limited scope of this decision, which excluded consideration of outstanding claim payments and financial/consequential losses being investigated under a separate new complaint.

The Ombudsman's reasoning

The ombudsman accepted that there were avoidable and unnecessary delays and poor service from September 2023 onwards, and that Zurich's actions caused substantial delay in claim progression and settlement, impacting E's ability to complete repairs and causing considerable inconvenience. However, the ombudsman limited the scope of this decision to the period from September 2023 to March 2025, excluding consideration of financial and consequential losses which were being investigated under a separate new complaint. Within this limited scope, the ombudsman found the £600 compensation offered by Zurich to be fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website