DIRECT LINE Home Insurance - NEW FOR OLD?

loveispatient

Hi there,

I've recently made a claim on Direct Line Home Insurance (under accidental cover) for a mobile phone which was broken while at home. They have accepted the claim, and I sent through the phone, but now I'm in this situation:

*The phone I had was a HTC HD2. It would cost me ~£400 to replace (they don't have any in stock, I don't think the phone is even made anymore...but some online shops still sell them).

*They have offered me a Sony Ericsson Xperia10 mini (which would cost me around £120 to buy new through an online store).

*This phone does not have the same spec - not even close. It is not usable as a business phone, has a worse processor, worse battery life, MUCH smaller screen (2.55in vs 4.3in), wouldn't accept the 32GB memory card I have (maximum size 16GB)...basically is inferior in every way.

*They are claiming this phone is a better spec, which is utter nonsense.

*Upon asking for cash alternative (which they said they can do if they don't have the same model) they have offered me £109 (minus the excess).


My understanding is that this is supposed to be a "new for old" policy, but I can't replace the phone with one with a similar spec for £109, not even CLOSE!! They are saying that's all I would need to buy a phone of the same spec.

I've tried to argue the toss, telling them these things, but they just disagree!

Can someone advise me of where I stand, and what I can do to get the money I need to replace the phone? I'd be happy if they replaced it with a HTC Desire HD or HTC HD7 (which are closest in spec, and at least the same screen size, not some piddly little credit-card-sized phone!) but they won't do this.

What are my options? How do I get the money out of them, or a suitable replacement?

:mad:

Many thanks

A

dacouch

Have a read of this link from the Insurance Ombudsman and then refer DL to it, they should follow it

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

loveispatient

Thank you for your reply, dacouch. I had read this article, but not sure of how exactly it would relate to my situation, where the settlement/replacement offered is less than the value of the phone.

...oh, and I checked on some online mobile recycling sites, and they would offer ~£150 for the handset just for recycling...I really don't know where they get their cash settlement figure from!!

bellabear_2

Your best bet is to ask them how they have defined the specs on the new phone as better, find a site that compares both of the phones (as well as your suggested replacement) and see what they say to that.

I know from experience that if I suggest a replacement, I need to detail why I think this is a suitable replacement (but there will be the odd occasion when this is unsuitable for whatever reason, in which case they shouldn't have a problem considering the alternatives).

HTH

dacouch

bellabear wrote: »

Your best bet is to ask them how they have defined the specs on the new phone as better, find a site that compares both of the phones (as well as your suggested replacement) and see what they say to that.

I know from experience that if I suggest a replacement, I need to detail why I think this is a suitable replacement (but there will be the odd occasion when this is unsuitable for whatever reason, in which case they shouldn't have a problem considering the alternatives).

HTH

The link I provided says that if the Insurer should arrange a cash settlement if the item cannot be replaced through their supplier network.

"Opting for "replacement" is only a reasonable option on the insurer’s part if the object claimed for can be replaced. If the object is antique jewellery, for example, then it is not open to the insurer to insist the claimant buys a modern replacement from a chain shop. Similar issues arise whenever the replacement options are limited. It may, for example, be unreasonable to limit a policyholder’s choice of replacement to a particular retailer.

Policyholders should be allowed to choose where they purchase a replacement and they are entitled to a cash settlement if they cannot find an acceptable alternative. In such circumstances, we would not regard it as reasonable for the insurer to make a deduction from the cash settlement to represent any discount it would have got if the policyholder had bought a replacement from one of the insurer’s nominated suppliers. Nor would it necessarily be appropriate for the insurer to offer vouchers to the policyholder. If the option of replacement is not available, then the only way in which the insurer can indemnify a claimant is by a cash settlement."

N1AK

annaburn wrote: »

What are my options? How do I get the money out of them, or a suitable replacement?

Find someone who is selling the phone you have lost, or the direct equivalent if it has been discontinued. http://www.carphonewarehouse.com/mobiles/mobile-phones/HTC-TOUCH-HD-2/HANDSET perhaps (or a more expensive shop if you can be bothered to find one )

Tell your insurer that they are not offering an equivalent replacement, that the cash settlement offered is insufficient and that the item can be replaced, new, from the supplier specified for £x amount.

Given that the item can be replaced they have no grounds for not doing so. They are trying to rip you off.

Can you let us know who your insurance is with? I, for one, would like to know so I can avoid them in future, if that's how they handle claims!

loveispatient

Hi there,

Got this resolved today!

I spoke to Financial Ombudsman Service this morning, who redirected me to Financial Services Authority consumer helpline, who pointed out all of the policies they were breaching, should I wish to make a detailed complaint. They also gave me the contact number for Direct Line Executive Liaisons Team (I spoke with someone called Verna Parkinson). The number I called was 0208 285 3866. Told her what had happened, and she had someone from Direct Line Home Insurance call me back (I think they just oversee the complaints or something?!) who has spoken with Direct Validation about the amount/handset offered.

I've now been offered the full amount it would cost me to replace the handset (new) from Amazon.

I'm a happy bunny.

The things which I think made a difference were:
- mentioning FOS and FSA.
- Calling that number, rather than calling back Direct Validation, or the Customer Accounts number.

It's with Direct Line...but it's probably much of a muchness, who you have your insurance with, they're all trying it on for the cheapest way to settle a claim.

Thanks for the help and advice

adamc260

Aint it funny that the SECOND you complain your given what you SHOULD of been given.... Just seems they try rip you off in the hope you accept

Glad its resolved!