Claiming on something bought abroad (duty/VAT question)

MercilessKiller

Hi All

If an item (gadget) was bought in the US and brought back to England, would the insurance company require to see any proof of duty/tax evidence if a claim was made or just the original receipt showing the USD amount? I.E Is it essential a proof of duty receipt is kept for insurance purposes?

I can't find anything in home insurance policy documents that mentions tax, VAT or duty but just thought I'd see if anyone else knows!

Thanks!

InsideInsurance

Home insurance is normally new for old so the price paid, with or without tax, is irrelevant unless the item is no longer available and no equivalents exist any more.

If there is no mention of taxes then there are no grounds that an insurer can decline a claim for goods illegally smuggled into the country as long as the items themselves are legal here (you cant claim if someone steals your drug stash - though I wouldnt put it past some people to try)

Historically some insurers did try despite there being nothing in their policy but the FOS has ruled against them. Of cause they can threaten to report you to HMRC but in realistic terms they are unlikely to carry this through and HMRC are probably not bothered about someone who smuggled in an iPad a couple of years ago.

MercilessKiller

This is also an issue of throwing away duty receipts when paid for at customs. I imagine most people don't think they need to keep that receipt when they have the original one!!!

InsideInsurance

Receipts are given an overly high importance when people think about insurance. If they were 100% required then no one could ever insurance something they receive as a gift or they inherit.

In practice they are simply an easy way of establishing ownership/ what someone owned when it comes to a theft or loss claim but there are other mechanisms for doing this when a receipt isnt available for whatever reason.

MercilessKiller

InsideInsurance wrote: »

Receipts are given an overly high importance when people think about insurance. If they were 100% required then no one could ever insurance something they receive as a gift or they inherit.

In practice they are simply an easy way of establishing ownership/ what someone owned when it comes to a theft or loss claim but there are other mechanisms for doing this when a receipt isnt available for whatever reason.

Thanks! That answers my other concern about my TV which I bought 9 years ago (and thus no receipt) haha!

Thanks for your help.