Direct Line / LMG

Mrs_J_3

I'm concerned I'm at the begining of a very long saga.

My engagment ring is lost, LMG value it at £X and offer a giftcard. A straight replacement is available at X+£700. I decide as I can't "replace" the ring I would like something different. I find the perfect ring in a shop not on the approved list for LMG.

Direct line are now offering a cash settlement of X-£500. I've started the complaint procedure and am willing to go to the ombudsman.

So, what do you think? Should I expect £X to take to the shop as I would if it was on a plastic card? Anyone any experiences? Is this going to be a long fight?

Thanks.

TSx

Unless they cannot replace the ring like-for-like, they should offer you the full cash settlement figure. If they can replace it like-for-like (if they've given you a giftcard for £x, you need to find out exactly what they are basing their figures on) then they are entitled to make a deduction in the case of a cash settlement for the saving they get from their supplier.

More info here

adamc260

TSx wrote: »

then they are entitled to make a deduction in the case of a cash settlement for the saving they get from their supplier.

More info here

But it says here

"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."

mikey72

Mrs_J wrote: »

...............My engagment ring is lost, LMG value it at £X and offer a giftcard. A straight replacement is available at X+£700. ...............

Why are they only offering £700 less than it would cost for a straight replacement?

TSx

adamc260 wrote: »

But it says here

"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."

Providing they can't find an acceptable alternative - the question as Mikey says is why are they offering £700 less than the cost of the ring? Presumably they believe it can be replaced like-for-like at that cost, so why can't it?

If they can't replace it like-for-like (at the cost on the giftcard unless there's any limit being applied here) then they should cash settle at £x (or more accurately £x+£700 as that would truly indemnify them)

InsideInsurance

The other argument you can try is over sentimentality. The FOS allow for deductions on cash settlements with the two exceptions being where the PSL are unable to provide a suitable replacement (normally considered like for like) or where the item is of significant sentimental value and thus irreplaceable.

Honestly though, will you get another ring to use as your engagement ring or are you going to live without one and buy earrings or such instead with the settlement?

Mrs_J_3

Thanks all.

I do intend to buy a replacement ring, but felt a different ring would be nicer than a ring that looks like the one I lost but isn't actually the one I got married with had first child with etc.

LMG valued the ring at X, so I assume they felt they could reproduce the ring for that cost. To walk into the shop today and buy a straight replacement would be X+£700. Direct line said the cost to them to replace the ring would be X-500, so assume they mean the replacement would be via LMG rather than the original shop.

I'm just really annoyed as if I accept the giftcard I get £X, but if I don't I am penalised £500. Don't suppose anyone is looking to buy some expensive jewellery and fancies buying a gemcheck card;)

jonesMUFCforever

The whole point of insurance is to put you back in the position you would have been in had not the claim ocurred ie to give you your ring back (or nearest alternative) .
I don't think you have much of a case if you want to buy something different.

InsideInsurance

Is X inclusive of your excess or after the excess is deducted? How much is your excess?

In normal circumstances your ring would be valued and you would be told that value is A and that is the high street price of your ring. Your excess is B and if you settle the claim by gift card the gift card should be for A-B

If you decide to get a cash settlement rather than the gift card then the settlement can be reduced by the percentage discount the insurer normally receives from face value of the gift card. So if the insurer gets a C% discount and you want a cash settlement you receive (A-C%)-B

If you are saying that what you've been offered as a giftcard is £X, that to buy the same ring again is £X + £700 and your excess is less than £700 then you need to dispute the valuation in the first place.