Not upheld: Motor insurance, claim handling complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr S complained that AXA Insurance treated him unfairly by recording his motor insurance claim as a fault claim with 50/50 split liability, despite a field investigator's opinion that the third party was at fault. Although the field investigator concluded Mr S had right of way and was in the correct lane position, the third party disputed liability and there was no independent witness evidence or dashcam footage. AXA decided to settle at 50/50 split rather than defend the claim, determining it could not guarantee successful cost recovery. The ombudsman found AXA acted fairly because claim recording depends on cost recovery rather than liability determination, and the lack of evidence made defending the position commercially unreasonable. The complaint was not upheld, though the settlement was made without prejudice allowing Mr S to pursue the matter through courts.

The Ombudsman's reasoning

The ombudsman found that while the field investigator concluded the third party was at fault, claim recording as fault or not-fault depends on cost recovery, not liability determination. Since the third party disputed liability and AXA could not guarantee full cost recovery without successful court action, settling at 50/50 split liability was a fair commercial decision. The ombudsman noted that AXA's discretion to decide settlement strategy is permitted under policy terms and that the lack of independent evidence made defending the position risky. The settlement without prejudice allows Mr S to pursue the matter through courts if desired.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website