Upheld: undervaluation of vehicle, inadequate claims documentation, unreasonable delays in claims handling, unfair treatment regarding salvage retention complaint against Haven Insurance Company Limited
Financial Ombudsman decision DRN-6344634 of 2026-05-28T00:00:00+00:00. undervaluation of vehicle, inadequate claims documentation, unreasonable delays in claims handling, unfair treatment regarding salvage retention complaint against Haven Insurance Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6344634 |
|---|---|
| Decision date | 2026-05-28T00:00:00+00:00 |
| Firm | Haven Insurance Company Limited |
| Product | motor insurance |
| Claim type | undervaluation of vehicle, inadequate claims documentation, unreasonable delays in claims handling, unfair treatment regarding salvage retention |
| Outcome | Upheld |
| Remedy | Haven must pay: (1) £1,273.50 being the difference between its settlement of £10,947.50 and £12,221 (accounting for £60 MOT deduction and £850 excess); (2) interest on £1,273.50 at 8% per annum simple interest from date of initial settlement to final settlement; (3) prompt assessment and reimbursement of reasonable additional transport costs incurred due to delays; (4) £550 compensation for distress and inconvenience (in addition to £200 already paid). |
Summary
Mr C complained about Haven's handling of a motor insurance claim following a May 2025 incident where his vehicle was damaged and subsequently declared a total loss. Haven valued the vehicle at £11,800, but the ombudsman found this was below the highest industry guide valuation of £13,131 and that Haven had failed to provide promised repair estimates or formal engineer reports to justify the total loss decision. The claim experienced significant delays from June to November 2025, during which Mr C incurred £1,600 in hire costs and £300 in additional insurance expenses. Additionally, Haven did not give Mr C a fair opportunity to question the Category S salvage assessment or retain the vehicle before it went to auction. The ombudsman upheld the complaint and required Haven to pay the valuation shortfall with interest, reimburse transport costs, and pay £550 additional compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Haven failed to apply the highest valuation from industry guides (£13,131 versus £11,800 used), did not provide promised repair estimates or formal engineer reports to justify the total loss decision, and caused unreasonable delays from June to November 2025. The ombudsman determined that without repair cost estimates, it was impossible to verify that the standard 60-70% repair cost threshold had been met. Additionally, Haven failed to give Mr C a fair opportunity to question the Category S assessment or retain the salvaged vehicle before it went to auction. The delays directly caused Mr C to incur £1,600 in hire costs and £300 in additional insurance costs that would not have been necessary with prompt claim resolution.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Haven Insurance Company Limited, all decisions | 401 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website