Home Insurance - Jewellery - Cash/Gem Card

adzy77

Hi,

I have had an engagement ring insured on my home ins. policy since January and recently discovered that some insurers, in the event of a claim will payout with a gem card or something which is essentially a gift card that can only be used at certain retailers.

The ring we have is pretty unique and came from overseas so a gift card wouldn't really do the job if it ever came to it (touch wood it doesn't!)

Now, what is the stance on this, are you free to reject this and insist on a cash payout or do you have no choice other than move to a provider that does offer cash.

Reading through my policy docs I don't see any mention of being paid out by gift card however I have asked them the general question via email and they are saying the below:

"It entirely depends on the jewellery itself. We prefer to use a Personal Jewellery Service to make the replacement.Some customers prefer to find their own replacement in which case we use Gem cards & provide a list of shops that will accept them"

Not sure what this PJS is at the moment, just waiting for a response.

The policy is with Policy Expert by the way.

Does anyone know any insurance companies that will replace like for like or pay cash?

enjoyyourshoes

Hi, I have jewellery specified on my insurances, one required a valuation done within the last 3 years (which cost you money but you do get it professionally done and recorded on a secure on line account)
Direct line and PO insurances.

adzy77

enjoyyourshoes wrote: »

Hi, I have jewellery specified on my insurances, one required a valuation done within the last 3 years (which cost you money but you do get it professionally done and recorded on a secure on line account)
Direct line and PO insurances.

Yeah I have exactly the same, specified the jewellery based on the valuation and have to keep it up every 3 years along with a yearly inspection, which is fine.

Just don't ever want to be stuck with a voucher should the worst happen. It does seem that you can refuse them though and go to the ombudsman if needed!

InsideInsurance

Settlement mechanisms dont tend to be in policy wordings or are a very small generic "settle as we see fit" in some of the general clauses sections.

The general rule is that an insurer has to provide something of similar specification. If there preferred suppliers can do this then they are entitled to give gift cards/ direct settle with the supplier to do so or if the customer insists on cash then they can pay out on the suppliers discounted rate rather than high street prices.

If a preferred supplier cannot provide a similar spec replacement then a cash settlement would have to be made for its full value not the discounted one.

Obviously where arguements start is what is the same specification. Is a Beaverbrooks 1ct diamond ring the same spec as a Cartier 1ct diamond ring? Can a jeweler in Hatten Gardens produce the same quality of engraving as the artisan person in India achieved on the original? etc etc

adzy77

InsideInsurance wrote: »

Settlement mechanisms dont tend to be in policy wordings or are a very small generic "settle as we see fit" in some of the general clauses sections.

The general rule is that an insurer has to provide something of similar specification. If there preferred suppliers can do this then they are entitled to give gift cards/ direct settle with the supplier to do so or if the customer insists on cash then they can pay out on the suppliers discounted rate rather than high street prices.

If a preferred supplier cannot provide a similar spec replacement then a cash settlement would have to be made for its full value not the discounted one.

Obviously where arguements start is what is the same specification. Is a Beaverbrooks 1ct diamond ring the same spec as a Cartier 1ct diamond ring? Can a jeweler in Hatten Gardens produce the same quality of engraving as the artisan person in India achieved on the original? etc etc

Thanks for that, makes me feel better about it!