Not upheld: Motor insurance, total loss valuation complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr G complained that AXA undervalued his vehicle at £2,659 following a total loss claim, believing it should have been valued at approximately £4,350. AXA maintained its valuation was completed by a Senior In-House Engineer and that Mr G's market comparables related to different vehicle specifications. The ombudsman reviewed the complaint against motor trade valuation guides which showed values of £2,150, £2,480 and £2,492, finding AXA's offer exceeded the highest guide value and was therefore fair and reasonable. The ombudsman also rejected Mr G's complaints regarding the no claims bonus and premium refund, finding AXA acted in accordance with policy terms and standard industry practice. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the policy definition of market value and relied on motor trade valuation guides as the most reliable evidence, finding them based on nationwide research of sales prices. AXA's offer of £2,659 exceeded the highest guide value of £2,492, therefore meeting its policy obligations. The ombudsman found market adverts less reliable than guides due to variations in mileage, registration year and other factors. Regarding the no claims bonus and premium refusal, the ombudsman confirmed AXA acted in accordance with standard industry practice and explicit policy terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website