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

kna

If I took an iPhone to the Apple store (which has water damage indicators), they'd take one look at those and say it needs replacing. If it suddenly started working after I'd got an insurance replacement, those indicators still say it's been submerged in water. Just because it does everything it did, it's still a damaged device not worth it's original value.

They've reviewed the damage and paid because it's beyond economical repair to bring the watch back to it's condition before you washed it. If inspected by a watchmaker their skill would probably identify it's been through the wash and is worth far less.

You're not defrauding them out of £2000 worth of watch, you've got a damaged watch worth not nearly as much, which just so happens to still tell the time (for now).

Morally however, you should absolutely spend the money on a replacement, that's what it's for and if you sold the old one, you should really explain that it's been through the wash and is an insurance write off. Otherwise, you're just screwing over someone else.

Barryfan

The insurance company made the decsion to "write off" your watch, so I don't think you've anything to feel guilty about by accepting the voucher. The watch may be working now but could stop anytime. Insurance compaies are never the "losers" anyway and as one prevous poster said, if you stay with the same insurance company your premium will probably go up next year. I know mine did when I claimned for damage caused by a leaking washing machine!

pollypenny

If it was was a small local company, I would admit it. However, with a big company, £2000 is a drop in the ocean.

Their mistake; their loss.

pennypinchUK

Well, whatever SHOULD happen, I doubt very much whether many people would return the £2000 to their insurer, regardless of what they say on moneysavingexpert.com

I'm pretty certain most people would take the voucher and keep quiet, whether that's right or wrong. They'd justify it by rationalising that they'd given their insurer the chance to examine it. And hey, what's to say it'll keep working....

You need to examine your own conscience, and not take any notice of what people claim they'd do in the same circumstances!

colinlyne

Keep it. They have, and will, make a fortune from you and others. Well done.......I won't tell anybody!

Augustus_the_Strong

Ooh, actually a real dilemma this time - you know in your heart that you shouldn't keep the money and you are robbing the insurance company, but... We all hate insurance companies who are robbing us left right and centre to give us 'peace of mind', and the fact that they have inspected the watch and written it off themselves just about justifies keeping the £2000. I think I'd say keep the money (what else can you do, anyway?) and put it out of your mind.

tgroom57

Hang on a mo while I go find an Omega watch to buy. A watch that survives the wash is worth having.

AliBaliBee_2

Keep the money. You claimed in good faith and told the truth at the time. Who knows when your watch will pack in again, it could happen tomorrow, and when you try and claim i can imagine that would be somewhat difficult!

The trouble with insurance companies is that they keep a record of how many times you claim whether you get money from them or not. So you will have a claim recorded against you now. If you give the money back you will still have that claim recorded against you and your premiums will still rise next year despite the fact that you handed the money back. Even if you have a protected bonus, as i believe some household insurances do nowadays. I should get one of those....!

In an honest world then you would give the money back and the claim would be purged from the system and it would be as though it had never happened, but thats not the way insurers operate.

Brian_Steele

In my experience, insurance company accounts departments have no clue what they are doing. I am an honest person who would always return overpayments or point out when someone has undercharged me or given me too much change, but I have long since given up where insurance companies are concerned.

I run a business which pays huge insurance premiums. Sorting out accounting errors is like pulling teeth - actually worse than that, because the teeth just never actually come out.

One year, they took a £2000 direct debit that was £8 too high. Being sick of all their previous mistakes, I reversed it using the Direct Debit Guarantee, quite happy to pay them the £1992 when they had got their act together.

After more than 10 years, I am still waiting.

mrweeble

If the watch had died and you went out and bought a £500 watch and kept the £1500, you wouldn't feel guilty I'm guessing.

So what I would do, is take the watch to a good watch maker for an overhaul, get him to make sure it works fine. That would probably cost a few hundred. Then, keep the rest because your watch probably now has a significantly reduced lifespan, and will need replacing far sooner than you otherwise would have and/or will need more frequent services which will eventually eat up that money making you and the insurance company "even"