Help-Can Zurich make me accept a replacement fromt heir supplier

lesandflynny

Zurich want to replace my platinum diamond ring through their supplier.

The insureres and my independant valuations came back at over 4k. Zurich say i either accept a ring off their supplier whom i have never heard of or accept 1,800. How can anybody supply a quality item of this nature for less than half the price???

What should I do.

Cheers

tom188

Most if not all insurers have this arrangement. They will normally allow you to get a replacement of equivalent value from their supplier or offer you less money to go out and purchase a replacement yourself. This discourages fraud and the company is able to purchase from the supplier at a discount to the retail price of the item.

gazza975526570

The reason they get it so cheap is because of the massive discounts they can negotiate.

They will be the same quality as what you can buy yourself in the shop.

From working within insurance i have seen some jewellery discounts up to 70%

Astaroth

Under common law (and normally also the contract of insurance - ie your policy book) an insurance company can decide how the claim is to be settled. As a gesture of goodwill most insurers will offer alternative settlement mechanism (such as cash) but will inevitably disincetivise people from going down this route.

Insurers have massive buying power - I havent seen anywhere near 70% being achieved on jewellery but the discount I have seen are still substantial. They are only able to do this by putting through £x million pounds of business a year. Therefore a cash settlement is always going to be no more than they would have had to pay their discounted supplier and most likely is going to be even further below that as the more cash they give the less discount they get from their suppliers.

That all said and done, you are entitled to a like for like replacement - if your lost ring was platinum with a certified diamond then the replacement should be a platinum ring with a diamond certified to the same value. The world becomes a little more tricky if it isnt a certified diamond as non-certified diamonds (cant remember the derogatory term the jeweller I was speaking to the other day called them) then you cannot prove the quality and quality can vary fairly significantly from stone to stone.

Most insurers have more than 1 supplier (typically budget, standard and superior), I would suspect that they have appointed one of an appropriate level given your estimated value (I doubt anyone would consider appointing Elizabeth Duke for a £4k ring) but it may be worth a call if you dont believe the appointed company carries stock up to the required standard.

silvercar

you don't have to accept their offer. The FOS has ruled on jewellery being a personal matter of taste.

Direct from the Financial ombudsman newsletter:

"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.

In some cases, policyholders may not wish to purchase a replacement for the damaged or stolen goods. This may be, for example, because their circumstances have changed, or the object had sentimental value. Where this is the case, we will normally ask the insurer to agree a cash settlement. "

here:

dodgy link see post #7

If they won't back down appeal to the FOS, the FOS will charge them to investigate!

lesandflynny

Cheers silvercar

I have used this to threaten my insureres and await their reply.

I cannot seem to get the link to the actual post to work. Can you check and re-post.

Ta

silvercar

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

good luck!

lesandflynny

Thanks, wrote to Zurich who have now passed on my concerns to their customer services departnment. They say they will be in touch in 5 days in line with FIA guidlines, I will let you know how I get on.

This claim has been a farce from the start