Partially upheld: claims handling - total loss determination and retention of vehicle complaint against Haven Insurance Company Limited

Decision detail

Summary

Mr M complained about Haven's handling of his motor insurance claim following an accident on 26 April 2025, specifically challenging Haven's decision to deem his car a Category S total loss and refusing to allow him to retain it. The ombudsman found that the structural damage to the A pillar and sill, combined with repair costs of 60-87.35% of market value, justified the total loss classification, and that Mr M had provided no engineering evidence to contradict this. However, the ombudsman found that Haven's policy contained no provision preventing retention of Category S vehicles, and that under the UK Salvage Code of Practice such vehicles can be retained once repaired. The ombudsman partially upheld the complaint, requiring Haven to permit Mr M to retain the car if he wished (paying the salvage value), pay the market value of the car, and pay £300 compensation for poor communication and the PCN issues that occurred whilst the car was in Haven's care.

The Ombudsman's reasoning

The ombudsman found that the structural damage to the A pillar and sill, combined with repair costs ranging from 60-87.35% of market value, justified Haven's decision to deem the car a Category S total loss. However, the ombudsman found that Haven's policy wording contained no provision preventing retention of Category S vehicles, and under the UK Salvage Code of Practice, Category S vehicles can be retained once structural damage is repaired. The ombudsman also found that Haven's communication could have been clearer and that the PCNs issued whilst the car was in Haven's care represented poor customer service. Mr M's refusal of interim payment offers meant he failed to mitigate his losses, so no interest was payable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website