Not upheld: claim settlement decision and communication/expectation management complaint against AXA Insurance UK Plc

Decision detail

Summary

Ms D complained to AXA Insurance about the settlement of a motor insurance claim following a hit-and-run incident in a car park. AXA attempted to defend Ms D's position by obtaining CCTV footage and pursuing a non-fault claim against the third party, but ultimately recorded the claim as fault when the CCTV was inconclusive and the third party's vehicle showed no damage. The ombudsman found that AXA acted reasonably in its liability assessment based on the available evidence, though it could have communicated more clearly about the prospects of success. The ombudsman upheld AXA's offer of £350 compensation for poor communication and service, finding it appropriate and declining to order further remedy.

The Ombudsman's reasoning

The ombudsman applied the principle that insurers must act fairly and reasonably in deciding whether to settle or pursue third parties, based on clear understanding of evidence and circumstances. The ombudsman found AXA conducted a reasonable investigation and made a fair assessment given the inconclusive CCTV and absence of damage to the third party's vehicle. While AXA could have communicated more clearly about the prospects of success, the ombudsman noted that AXA did advise of the possibility of a fault claim and that Ms D needed to pursue the claim to access CCTV evidence and avoid significant repair costs herself.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website