Not upheld: declined insurance claim - wear and tear exclusion complaint against Red Sands Insurance Company (Europe) Limited

Decision detail

Summary

Mr S complained that Red Sands Insurance Company (Europe) Limited unfairly declined his motor warranty claim for a failed timing chain, citing the general wear and tear exclusion. Although the garage identified a known manufacturing defect and design flaw in the timing chain, the ombudsman found that the component failed at approximately 120,000 miles, which aligns with the documented life expectancy for this part in Mr S's vehicle. The ombudsman concluded that the timing chain failed in line with its expected age and life expectancy based on vehicle manufacturer specifications, and therefore Red Sands acted fairly and reasonably in applying the wear and tear exclusion. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman distinguished between a part failing when worn out as expected versus failing sooner than expected. Although the garage identified a design flaw, the timing chain failed at approximately 120,000 miles, which aligns with the documented life expectancy for this component in Mr S's vehicle. Therefore, the timing chain failed in line with its age and expected life expectancy based on the vehicle manufacturer's specifications, making the wear and tear exclusion fairly applicable. Red Sands did not act unfairly or unreasonably in declining the claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website