Insurers refuse to make cash settlement

System

If you incur a loss and the insurance company pays out, you are normally free to decide whether to replace the item or not.
Your car is stolen and they give you its value. You are free to buy another one exactly the same, buy a more expensive one, buy a cheaper one, or give up motoring and buy a bicycle.
That's not fraud. You have suffered the same loss regardless of what you do with the money.

Some years ago we suffered damage to our incredibly expensive triple-glazed office windows. The insurance company assessed the loss and paid us the money. Replacements have proved virtually impossible to find, and meanwhile we have found that the resulting double-glazing is perfectly adequate. So we shall probably not bother replacing them.