Upheld: claim handling - delays and poor service communication complaint against Acasta European Insurance Company Limited

Decision detail

Summary

Mr A purchased furniture care insurance for a £4,021 sofa and made a claim in February 2025 for a stain on a cushion. After ordering a replacement cover, a glue mark was discovered requiring another replacement, but the manufacturer subsequently went into administration preventing further repairs. Acasta offered either a full credit note or 50% cash settlement. The ombudsman found the settlement offer was fair and complied with policy terms, but upheld the complaint regarding unnecessary claim delays and poor telephone communication, awarding £300 compensation for these service failures.

The Ombudsman's reasoning

The ombudsman found that Acasta's settlement offer was fair and complied with policy terms, as the manufacturer's administration made repair impossible and the policy allowed for credit note settlement in such circumstances. However, the ombudsman identified unnecessary delays in the claim handling process, particularly between learning repair was impossible and making a settlement offer, and acknowledged Acasta's poor telephone communication. These service failures, while not affecting the claim outcome, caused Mr A additional distress and inconvenience warranting compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website