Jewellery claim: Vouchers vs Cash

smdevon

On behalf of v elderly Mum I submitted a claim for jewellery stolen from her house (almost certainly by carers visiting daily to help her). The company has come back with a verbal offer of either:

1) Vouchers, to the full value of the claim, which I had estimated at £8.5K. Their valuers (IVAL) appear to agree the value, or maybe I estimated too low?
2) Cash, for about £5.3K

Mum was a goldsmith so most items stolen were unique and cannot be purchased - certainly not on the high street where these 'vouchers' could be used.

The insurance policy is for 'unlimited' cover (buildings and contents), although no 1 item over £1000. I feel that the vouchers offered are not appropriate in this case.

Can anyone advise me on what scope there is for negotiation? Or perhaps using an insurance assessor?

mattymoo

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/10/oct-repair-replace-cash.htm

The financial ombudsman has considered this issue and he states that where the items cannot easily be replaced at a high street jeweller, then it is incorrect to apply a discount to any offer of cash settlement.

The FOS ruling trumps anything the insurers have so feel free to use it in support of your argument.

smdevon

Many thanks Mattymoo. I'm still awaiting the written offer from insurance co., but now feel better prepared to argue the case.

dacouch

They will normally either not know of the Ombudsman's opinion on vouchers / cash or chose to forget it so you may have a bit of arguing to do

smdevon

I have at last had a written offer from Crawfords (loss adjusters), who say they have reported to Aviva that they should settle for very nearly the full amount of my estimated loss. I will await an actual cheque with bated breath .....

I think this offer has come because during a phone conversation with them I referred to the FOS decision, and suggested that their previous verbal offer of a lower figure was not appropriate.

Thanks so much for your advice.

mattymoo

Good news. Thanks for the update.