Partially upheld: unfair claim settlement and poor service handling complaint against Aviva Insurance Limited
Financial Ombudsman decision DRN-6381976 of 2026-05-26T00:00:00+00:00. unfair claim settlement and poor service handling complaint against Aviva Insurance Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6381976 |
|---|---|
| Decision date | 2026-05-26T00:00:00+00:00 |
| Firm | Aviva Insurance Limited |
| Product | home insurance |
| Claim type | unfair claim settlement and poor service handling |
| Outcome | Partially upheld |
| Remedy | Aviva required to: (1) Settle claim based on updated figures with locket cash settlement increased to £650; (2) Settle claim for Prada bag in line with policy terms; (3) Add 8% simple interest per year on any cash settlement from date of proof of purchase/ownership to date of settlement; (4) Pay £400 compensation to Mr and Mrs C instead of £150 offered. |
Summary
Mr and Mrs C complained about Aviva's settlement of a home insurance claim following theft from their home in March 2025. Aviva offered voucher and cash settlements for jewellery and other items, but Mrs C wanted full cash settlement and coverage for additional items. The ombudsman partially upheld the complaint, finding Aviva's voucher settlement fair but requiring increases to the locket settlement (£650 instead of £595), settlement of the Prada bag claim, addition of 8% simple interest on cash payments, and increased compensation to £400. The ombudsman also found Aviva acted unfairly by delaying repair works and failing to offer interim payments with clear explanation of Mrs C's rights.
The Ombudsman's reasoning
The ombudsman found Aviva's jewellery settlement by vouchers was fair as the specialist identified reasonable replacements at the offered value, and the vouchers were usable with applicable retailers. However, Aviva's cash settlement for the locket was inconsistent with its own evidence showing a cost of £650 rather than £595. The ombudsman upheld the claim for the Prada bag as Aviva could not explain why the photo provided was insufficient. Aviva acted unfairly by not offering interim payments or explaining Mrs C's rights, and by delaying repair works. The ombudsman awarded increased compensation of £400 to reflect considerable distress, inconvenience, and Mrs C's vulnerabilities, plus 8% simple interest on cash settlements from date of proof of ownership.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Aviva Insurance Limited, all decisions | 5,098 | 27% |
Source
Read the original decision on the Financial Ombudsman Service website