Upheld: unfair claim settlement valuation and delays in claims handling complaint against Collingwood Insurance Company Ltd

Decision detail

Summary

Mr S claimed on his commercial vehicle insurance after vandalism in October 2024. Collingwood settled the claim on 1 May 2025 using an average of three motor trade valuations, deducting £100 for wheel wear, resulting in a settlement of £16,013.33. Mr S disputed the valuation and complained about delays and lack of courtesy car. The FOS found Collingwood's methodology unjustified without evidence supporting the deviation from the highest valuation. Using its own four valuation guides, the FOS identified the highest value as £16,819, creating a shortfall of £805.67 plus interest. The complaint was upheld with additional compensation of £250 for inefficient claims handling.

The Ombudsman's reasoning

The FOS applies the principle that if an insurer deviates from the highest valuation returned by guides, it must evidence that deviation with proof the customer could reasonably replace the vehicle at the lower average figure. Collingwood provided no such evidence. The FOS consulted its own four valuation guides, finding the highest value was £16,819 compared to Collingwood's average of £16,013.33, creating a shortfall of £805.67. Additionally, Collingwood delayed requesting the police report and Mr S had to chase for updates, warranting compensation for inefficient claims handling.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website