Real-life MMD: Should I return £2,000 insurance cash?

Former_MSE_Debs Posts: 890 Forumite
edited 18 September 2012 at 4:51PM in MoneySaving polls
Money Moral Dilemma: Should I return £2,000 insurance cash?

I accidentally put my treasured old Omega watch through a washing cycle and when it came out, it wasn’t working. I sent it to my insurer who sent it back with a ‘beyond repair’ note and a voucher for £2000. The thing is, it’s now in perfect working order again. Should I send back the vouchers and get my £100 excess back or keep quiet?

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  • telsco
    telsco Posts: 116 Forumite
    First Anniversary Combo Breaker First Post
    Easy. Spend the vouchers and keep quiet.
    You claimed and they paid, all done in good faith.

    Although you might want to change insurer before you put it in the wash again ;)
  • bogwart
    bogwart Posts: 117 Forumite
    I'm surprised they returned the watch as well as paying out on the insurance policy. It would be wise to check whether the watch is in fact legally their property, which is what usually happens with cars.
  • mr-tom_2
    I think that if they returned it to you, it is fine to keep it.

    So what if it has begun to work again, the innards may be corroded or something, so in 2 months, it may die again. That's why the insurer wrote it off; it has become a bad risk for both of you.

    If the vouchers expire, then convert them to cash as best you can, stick it in the bank and don't spend it as one day, the watch will conk out, and in the meantime, you probably cannot re-insure the watch as it has already been written off.
  • janiebquick
    The daft thing is that insurance companies don't have a 'returns' department and probably would not know what to do with the vouchers if you did return them. They are cheapskates anyway if they gave you vouchers and not cash.

    Spend them. If your conscience troubles you, give some of it to charity.
    'Never argue with an idiot. They will only bring you down to their level and beat you with experience.' George Carlin
  • bob_the_tom8to
    I think you should give it back. I know it sounds bizarre to give back to an insurance company as they are often so hard to claim from but I believe that if you try to live honestly then you will always be blessed. You never know, in trying to give it back they might even tell you to keep it, as the above poster said they may not even have a returns department!
    'I love you, O Lord, my strength. The Lord is my rock and my fortress and my deliverer, my God, in whom I take refuge, my sheild and the horn of my salvation, my stronghold.'
    Psalm 18:1-2 :)
  • ngoodman
    If you do nothing, your insurance premiums will probably rise until you have repaid the claim. If you return the money, your insurance premiums will probably rise - because you made a claim. Whether or not they have had to pay out, future premiums will probably be decided on the claims you have made - not the payouts you've had. As with almost all insurance policies, you will lose out, whether you claim or not. As someone has already said, the watch is probably damaged and could stop working at any time.

    Keep the money and mitigate your losses.
  • mr-mixalot
    Sell the watch, put the money in the bank and then but a new one with your voucher.

    I had the same scenario when I dropped my mobile into the loo

    I got a new phone and somene got my old phone (still working after 2 years with no adverse affect) for a bargain price ;)

    Win Win for all parties concerned except the insurance company but I pay them enough so they get no sympathy from me :rotfl:
  • spursliz
    I couldn't believe those of you who say keep the cash and the expensive watch! This is why we all have to pay huge premiums - insurance fraud is theft, plain and simple. Please, return the money less your £100 excess.
  • Ligur
    Hardly fraud as the insurance company inspected it and "wrote it off" it may be that they classed it as beyond economical repair. Keep the money as it's their mistake. Perhaps they should change the watrchmaker who does their inspections.....
  • markdavey
    spursliz wrote: »
    I couldn't believe those of you who say keep the cash and the expensive watch! This is why we all have to pay huge premiums - insurance fraud is theft, plain and simple. Please, return the money less your £100 excess.

    How is it Fraud?

    The watch was sent to the Insurance Company for them to assess. They assessed it and deemed it Beyond Repair. They then issued the cheque for the claim and they returned the watch (which they had had assessed as BER). TBH they should use better assessors...

    Now, if the watch had not been sent to the Insurance Company for them to assess and it returned to working order after the company had paid out, I might agree that there is a bit of a grey area but certainly not in this case...
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