Norwich Union's "Complete Human Error" Leads to Car Owner's Financial Woes

A disturbing case of insurance claim mishandling came to light in 2005 when a car owner's vehicle was deemed a write-off by Norwich Union (NU). Despite the insurer's acknowledgement of "complete human error," the car owner, EA, was left waiting for several months for the claim to be settled. The issue only escalated when EA's attempts to contact the Sunday Times for help were dismissed due to the perceived progress made with NU.

Key Takeaways:

• Norwich Union (NU) acknowledged "complete human error" in handling EA's insurance claim for a written-off vehicle.
• EA's car was towed to a garage for repairs in September, and the insurer initially offered a payout of Pounds 1,000, less an excess.
• EA waited several months for the claim to be settled, with the Sunday Times intervening in December.
• NU admitted defeat and sent EA a cheque for Pounds 950 (car value minus Pounds 50 excess) within a couple of weeks.
• NU also sent a cheque for Pounds 100 as compensation for the delay, which was considered meager by the Sunday Times.
• EA requested Pounds 1,000 in addition to the initial payout, but NU offered Pounds 500 as a compromise.
• The dispute was eventually resolved with NU agreeing to pay an additional Pounds 400, bringing the total payout to Pounds 1,400.

Statistics:

• The vehicle was deemed a write-off in September, with an initial payout offer of Pounds 1,000.
• EA waited several months for the claim to be settled, with the Sunday Times intervening in December.
• NU acknowledged "complete human error" in handling the claim.
• The payout for the written-off vehicle was Pounds 950 (car value minus Pounds 50 excess), with interest and compensation adding an additional Pounds 400 and Pounds 500, respectively.
• The total payout to EA was Pounds 1,400.

Sources:

• The Sunday Times, 2005 (no specific date mentioned in the text)