Price Paid vs Like For Like Replacement

Fergie76

My wife and I were on holiday in Dubai in April. While we were the I bought her a 18ct gold, emerald and diamond eternity ring. Unfortunately, she has damaged it and one the emerald stones has been lost and other one is damaged. I have claimed on my house insurance and when I claimed I asked what would happen if their company could not repair it and she said it would be replaced like for like.

I received a call from their jewelers yesterday who said they felt they could not successfully repair they ring. So as way of settlement they offered me 3 choices:

1. Based on what I paid for the ring (£250 in Dubai), they felt that £350 on a gift card to be used at a certain group of jewelers.

2. Cash settlement of (I think) £268.

3. Cash settlement minus £52 to buy the ring back as scrap.

I have had a look on the two of the websites within the group, the first one doesn't have any 18ct rings and the second website the cheapest 18ct gold, emerald and diamond ring is £1325. So I told the company that I was unhappy with their offer as I could not replace like for like.

I phoned the insurance company last night and again they reiterated that it should be a like for like replacement and that I should email the other company with what I found. Today the company got back to me saying that the ring I found was not like for like the stones were better quality than in the ring I have and that they stand by their initial settlement offer.

My preferred option would have been for the original ring to be repaired as this has sentimental value for my wife, given that I bought it for her while we were on holiday. However, as they can't repair it, I think given that my insurance company has a like for like policy, the ring should be replaced with an 18ct gold, emerald and diamond ring. I realise there is a big difference in the price I paid and the cost of the replacement, but that is not my fault. I am not after the most expensive ring that I can find, it is the cheapest eternity style ring on their recommended website or if they can source a similar ring from another supplier for cheaper I would be willing to accept that.

Can anyone advise on where I stand with this?

paddyandstumpy

Ask the supplier to replace the ring like for like, or substantiate their offer (which should be enough to replace the ring on a comparative basis). If they can't, raise a complaint that you are in a worse position.

takman

Contact the shop in Dubai and buy it from them and get it sent to you. That sounds like it will be the cheapest option and you will get the exact ring that you had before!.

FutureGirl

Did you send the ring to them or just photos of the damage to the ring?

Did you provide the receipt showing it is 18carat gold? If not then they only need to base settlement on a 9 carat gold ring.

They don't have to physically replace the ring, they can give you vouchers (which you've advised they have), or a discounted cash figure.

Fergie76

Yes, I have sent them the ring as I stated in the OP, so they can see that it is 18ct gold.

I'm not asking them to physically replace the ring, just give me a settlement that allows me to buy a ring 'like for like', which is what my insurance company stated that I was entitled to.

Fergie76

takman wrote: »

Contact the shop in Dubai and buy it from them and get it sent to you. That sounds like it will be the cheapest option and you will get the exact ring that you had before!.

Prior to finding out the ring was damaged, rather than defective, I did try to find contact details for the Shop.

superbigal36

Remember you would also have paid import vat of 20% and possibly duty of 2.5% when you brought the ring into the UK.
Therefore surely the £268 cash settlement does not even "like for like" the Dubai cost.

mattk_180

Does your policy say that they have to replace it? Did you specify its value on your policy?


If they are unable to repair or replace they may be able to choose to indemnify you by means of payment. In that scenario, you paid £250, they have offered you £250, therefore they would have carried out their duty. Sentiment or the fact you would need to go to Dubai to re-buy it wouldn't come in to it.


If they have to replace it of course, then that is a different issue and you have a case to argue.

superbigal36

barter for a better cash settlement and head to ebay.
Decent example
http://www.ebay.co.uk/itm/18ct-gold-diamond-And-Emerald-Half-Eternity-ring-/201667294005?hash=item2ef44eb335:g:NWsAAOSwzLlXh7Q5