Partially upheld: claim handling delay and inadequate support complaint against China Taiping Insurance (UK) Co Ltd

Decision detail

Summary

Mr O claimed on his commercial buildings insurance policy with China Taiping after machines at his premises failed in March 2023. China Taiping required access to three-phase power to diagnose the issue and determine coverage, placing responsibility on Mr O to obtain this from his landlord. The claim stalled and was closed in October 2023, then reopened in March 2024 with no progress. Mr O's landlord subsequently obtained an injunction against him for unpaid rent, locking him out and forcing his business to cease operations. The ombudsman found China Taiping's requirements reasonable but upheld the complaint in part, finding the firm should have provided greater support to Mr O in dealing with his landlord, and awarded £650 compensation for the resulting distress and inconvenience.

The Ombudsman's reasoning

The ombudsman found it reasonable for China Taiping to require access to three-phase power to diagnose the machines' failure and determine policy coverage. It was also reasonable to place responsibility on Mr O, as a tenant, to obtain this access from his landlord. However, China Taiping should have provided greater support to Mr O in dealing with his landlord, recognizing the practical difficulties involved. While the ombudsman could not establish that additional support would have materially changed the outcome, the lack of support caused distress and inconvenience to Mr O, warranting compensation. The firm cannot be held responsible for Mr O's business losses or the consequences of the landlord's actions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website