FOS considers a fair and prompt resolution of an insurance claim to be part of the financial service provider (FSP)’s wider obligation to act with utmost good faith towards the policyholder.
In determining a dispute, FOS will look at:
- whether the FSP acted fairly and promptly to resolve the claim.
- what steps the FSP took to expedite the repair and ease the applicant’s burden if it chose to repair the damaged property.
- whether a cash settlement, if offered, was fair and sufficient for the applicant to complete repairs
- whether the FSP and the applicant tried to negotiate a fair and workable solution in the face of a genuine difficulty in sourcing replacement parts
- whether to award compensation if we find that the FSP