Being offered lower amount to settle claim in cash than vouchers.

jahunt7

Hi all

My insurance company has said that due to the vouchers I was given as part of my claim being difficult to use (!) they will give me a cash replacement, but will only give me £1700 cash rather than the £2000 I have in vouchers.

I am going to appeal regarding the amount offered as surely as my settlement was for £2000, then that's what I should be given whether it's in cash or voucher?

If I'm not happy with their response, any ideas whom I can complain to?

Any views/advice would be appreciated.

Thanks.

InsideInsurance

The financial ombudsman have ruled it is fair for insurers to reduce cash settlements to reflect the discount they receive from suppliers.

The only exception to this is when the preferred suppliers is unable to provide appropriate replacements in which case full cash must be given.

Why are you not wanting the vouchers?

[Deleted User]

I had this when I was burgled last year. They took a load of stuff including cameras, laptops and jewellery. The insurance company replaced the laptops and camera but I didn't want the jewellery replaced because it was my wedding ring, engagement ring and eternity ring and I was divorced! They were a bit difficult about it and didn't seem to think it was reasonable that i didn't want replacements for the rings my Ex had brought me (and that I no longer wore -hence they were in the house when I was burgled!).

In the end I got a cash offer but it was only 75% of the value of what had been taken so I'd say your offer is pretty good

lisyloo

and didn't seem to think it was reasonable that i didn't want replacements for the rings my Ex had brought me

I can totally empathise with you not wanting new rings, but you do need to appreciate that this is what the contract was for.
If you want something difference then you cannot expect that to be at a cost to the insurer.
P.S I don't work in insurance, just because I am representing a truthful point of view about the contract :-)

InsideInsurance

victoria61 wrote: »

I didn't want the jewellery replaced because it was my wedding ring, engagement ring and eternity ring and I was divorced!

You would normally get a store credit of some form with a jewellers and it would be your choice if you replace it with more rings or some other form of jewellery. It would only be if you dont want any jewellery and thus cash that you hit the deduction issue

jahunt7

Thanks for the responses. It's good to get some feedback on this.

The vouchers are difficult to use as there's a very limited number of suppliers who accept them due to the poor deal they get on them (apparently).

Interesting that IO has ruled on this - that's really useful information.

I'm reassured that this seems like a good offer.

Thanks again.