Is Goodwill same as Settlement?

spark_deals

Dear all,
Happy Snow!
Query as above.
The insurance company has sent me a payment as goodwill payment ( policy sold over the phone as mobile phones are covered but policy booklet received says it doesn't) and the last line reads as full and final settlement of my claim.
Please advice; true legal standing would be appreciated before I press them for real FULL settlement.
Thanks
Spark

dunstonh

Goodwill offers are typically offered where there is no evidence of wrong doing but the company either think it is too expensive to fight the case or they feel that whilst they have done no wrong, their documentation isnt as strong as they would like. Or they are just busy and its cheaper to settle.

weejonnie

An interesting point. if you cash the cheque then that would be the end of the matter. However if you feel (and it sounds like you do) that the amount offered is insufficient to cover the loss, then you should write back (returning the cheque - it does not prejudice your position if you return it, if in doubt make sure that you include the words 'without prejudice' on the letter) outlining why you feel the amount is inadequate and press for full settlement.

If the insurers do feel that incorrect advice has been given then they should be only too willing to pay adequate compensation as otherwise they have to pay FOS costs. (You can't approach the FOS until you have exhausted the insurance providers complaints procedure)

hugoshavez

I can never understand why people are told to return a cheque in circumstances like this.

A simple email explaining that the cheque has been received but the matter remains outstanding because of x, y & z would be perfectly sufficient.

Such a waste of postage...and interest!

rs65

What's in dispute? The amount of the cheque or the wording used?

spark_deals

hugoshavez wrote: »

I can never understand why people are told to return a cheque in circumstances like this.

A simple email explaining that the cheque has been received but the matter remains outstanding because of x, y & z would be perfectly sufficient.

Please explain. I have banked the cheque and advised them to explain the above terms.

Such a waste of postage...and interest!

rs65 wrote: »

What's in dispute? The amount of the cheque or the wording used?

Preferably first and probably both! Hope this doesn't answer your question but raised a new one.

rs65

spark_deals wrote: »

Preferably first and probably both! Hope this doesn't answer your question but raised a new one.

If you disagree with the amount then reject it and tell them what you would accept.

hugoshavez

spark_deals wrote: »

Please explain. I have banked the cheque and advised them to explain the above terms.

Be more specific. You've asked them to explain? By phone, email, or what? If you're not accepting the cheque as full and final settlement, you have to tell them!

And stop speaking in riddles if you're genuinely looking for help!

spark_deals

hugoshavez wrote: »

Be more specific. You've asked them to explain? By phone, email, or what? If you're not accepting the cheque as full and final settlement, you have to tell them!

And stop speaking in riddles if you're genuinely looking for help!

Thank you.
Did you read the title?
It is a simple query that people have to face and I as well.
Thanks for reply and interest in the thread and asking me to be more specific. I can't be more specific than title.
Please contribute for readers

flashg67

Goodwill as a term is often avoided nowadays to avoid ambiguity. I would say if they've used 'full & final settlement', then it's pretty clear what they mean?

If you're not happy with that, tell them, but be clear what you actually want and why what they've offered isn't acceptable. I deal with complaints, and often, the customer states the facts, but the required resolution isn't mentioned.

hugoshavez

spark_deals wrote: »

Thank you.
Did you read the title?
It is a simple query that people have to face and I as well.
Thanks for reply and interest in the thread and asking me to be more specific. I can't be more specific than title.
Please contribute for readers

Haha!

OK, an insurance company holds a reserve (an amount of cash) against any claim. Because they don't think yours is covered the amount held is 0.

Any time they make a payment and the amount left held against the claim is 0, the cheque will go out saying full and final settlement on it.

It's fine to bank the cheque if you tell them that you think they should be paying the claim in full; ie that banking the cheque is not your acceptance that the matter is complete.

The FOS will uphold a complaint if you were given reasonable grounds to believe that the phone would be covered.