Jewellery insurance claim - how much discount for cash?

thistle34

My father was recently burgled and my deceased mother's jewellery was all stolen.
He obviously wants a cash settlement rather than replacement. He kept receipts for most items. The insurance company has offered a cash settlement which is a 47 per cent discount on the validated values.

This seems excessive to me or is this the normal discount being offered in cash settlement claims.

Thankyou.

dogbot

discounting for cash is common as it 1) discourages dodgy claims and 2) relflects the discounts the insurer gets from its supplier

47% seems high however, are you sure it is all discounting or have some items claimed for not been "awarded"? Or has there been any amount deducted for under-insurance as well?

lisyloo

What is the other offer?
Is it vouchers at Goldsmiths or similar?

Personally I'd be checking out ebay for completed sales on the vouchers.
Depending on which store you would get a much higher return selling the vouchers.
Some store vouchers (like argos) go for nearly the full price.
Obviously you need to checkd they are transfereable.

magpiecottage

It depends on the jewellery concerned. If the insurer can get identical replacements from its own supplier then it is reasonable that it should not pay more than it pay that supplier to do so.

On the other hand, if it is something that the supplier cannot replace exactly, then its actual value would be more appropriate.

I am afraid you cannot get anything for its sentimental value, though.

dacouch

Have a read of this link from the Ombudsman and refer it to your Insurer if applicable http://www.financial-ombudsman.org.uk/publications/ombudsman-news/10/oct-repair-replace-cash.htm

lazer

They discounted my jewellary by 36% for settling in cash.

Unfortunately i didn't know about the the link above or would have requested full value

thistle34

I've calculated the 47% based on the "validated" amount for the 15 items and compared it to the "discounted" amount for the 15 items. There are no items in the figures distorting the number.

Thanks for the info on the vouchers and ebay route, but that won't suit my Dad.

I'm writing a letter now saying it is excessive. FSO article is really helpful.