Insurance Claim Payment: Vouchers

yiyidiscodiva · 5 March 2008 at 2:07PM

Hello All,

I'm a new member - hope someone can help me.

A couple of months ago whilst we were away, our header tank, which is stored in the loft, leaked through the house. The damage was very bad.

Two ceilings will need to be replaced and the rooms redecorated.
The carpet in two rooms plus hall/stairs/landing will have to be replaced.
Several pieces of yew furniture are damaged.
One oriental carpet is beyond restoration.
Plus a number of lamps, clocks and a radio.

So as you can see a lot of damage and we are running into mega bucks.

I advised the loss adjuster, when they visited, that I want to organise the quotations etc myself but that apart from the bed, I would not be in a position to do anything about it until after April. The adjuster agreed.

Over the course of the last couple of days, I've had two lots of Independant Valuers, turn up on my door step. No previous appointment made. My insurance company say that this is normal procedure.

More importantly and this is the main reason I'm writing; I was told today by this Independant Valuer that I will be issued with vouchers that I can use to spend in a store accredited to the insurance company.

Do I have to accept these vouchers by law? Of course I would prefer to have the cash because I just bet that the shops accredited to the insurance company are much higher priced than the shops I would use. Also, my insurance payments were made in cash - not vouchers!

Greatful to anyone who can help me with this question, please.

Yiyi.

Quentin · 5 March 2008 at 2:52PM

Unless your policy states otherwise (which is unlikely) they cannot make you accept vouchers.

Tell your insurance company you don't want them, and that you will pursue the matter all the way to the ombudsman if necessary.

(Not Argos vouchers by any chance?)

yiyidiscodiva · 5 March 2008 at 6:09PM

Quentin

I've read through my policy a couple of times and I can't see anything written about a voucher system.

Thanks for your help.
YiYi

FlameCloud · 5 March 2008 at 6:18PM

Quentin wrote: »

Unless your policy states otherwise (which is unlikely) they cannot make you accept vouchers.

Tell your insurance company you don't want them, and that you will pursue the matter all the way to the ombudsman if necessary.

(Not Argos vouchers by any chance?)

The policy will include a section that details how they settle claims. I would be shocked if it placed the option of settlement in the hands of the policy holder.

Quentin · 5 March 2008 at 6:24PM

That doesn't preclude them from trying to fob a policyholder off with vouchers.

If he doesn't want them he doesn't have to have them - unless of course his policy says otherwise!

So of course he should make it clear he's not interested.

tinkerbell84 · 5 March 2008 at 6:27PM

You'll no doubt get less cash than the voucher value though.

Why shouldn' they settle with vouchers? You need to replace stuff, they send you vouchers, you buy the new stuff with the vouchers

mattymoo · 5 March 2008 at 7:48PM

This page might help a bit.
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/10/oct-repair-replace-cash.htm

Quentin · 5 March 2008 at 8:10PM

tinkerbell84 wrote: »

Why shouldn' they settle with vouchers

A very simple answer to that.

Do I look the sort who shops at Argos for all my household goods?

Please give me the money so that I can do my shopping at Harrods as normal!

lisyloo · 6 March 2008 at 10:26AM

Why shouldn' they settle with vouchers?

The OP mentions yew furniture and oriental carpet.
I am not furnishings expert but it does not sound to me like the kind of thing you get at Argos.

I don't know what it says in the contract but I believe the idea is to replace your goods.
If you simply can't replace your goods at the establishment of the insurers choice then I would have thought that the insurer are not carrying out their obligations.

The insurers do this because they get a discount from Argos (or whoever supplies the vouchers).

I would personally be happy to take the vouchers if I could supply suitable replacements at the establishment for the amount given.
Otherwise I'd insist they complay with their obligations in the contract.

yiyidiscodiva · 6 March 2008 at 3:47PM

Hi all

Just to stop a little of the confusion here. My Insurance Company have not offered to give me Argos Vouchers - I think the Argos confusion came about from the 1st or 2nd response to my thread, when I was asked if I was offered Argos vouchers.

Nevertheless, they are vouchers which must be used in designated shops appointed by the insurance company. To my mind this would not put me in a very strong purchasing position. I pride myself in driving a hard bargin for anything of high value that I buy. These stores normally have a much higher mark-up on their goods and although I have absolutelly no way of proving it - I bet the insurance company get a cut.

What do you all think?

lisyloo · 6 March 2008 at 4:06PM

What do you all think?

Can you replace your goods with the vouchers given?

If the items are available (or suitable replacements) and they have given you enough to cover it and it's not inconvenient to get to the stores then I don't see why you have a problem.
It might not be the normal way you purchase things but you are now spending their money not your own.

I think you are right about the discount, but as a customer wouldn't you want them to take all reasonable steps to cut back costs?
Also it reduces fraud, which is also of benefit to you in keeping down premiums.

The nub of the issue is whether you can replace the goods with the vouchers provided without huge inconvenince, lack of choice, or shortfall in the amount.

Insurance Claim Payment: Vouchers

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