Zurich offer of £1369 cheque for Ring worth £2300

whippet

:mad: Where to begin? My wife recently lost one of 4 diamonds from her ring. I contacted Zurich who said they would get their appointed valuation/repair service Signet insurance services to contact me. I eventually sent the ring to Signet who said the ring couldn't be repaired without putting the other diamonds at risk. They valued the ring at £2150 and said they would send a voucher for £2100 (minus £50 excess) to be used at Ernest Jones (Part of Signet Group). The ring was bought in July 2004 and it was valued at £2150 then so I spoke to the jeweller who we bought it from and he said it was worth at least £2300 now due to 28 year high gold price alone. I went back to Zurich and explained that a) I didn't think the valuation was correct and b) I didn't want to be limited to using Ernest Jones. They came back after speaking to Signet stating that we could either have the voucher for £2100 to spend at Ernest Jones or a cheque for £1369 to spend as we like. They (Zurich) explained that £1369 is the discounted price to them to buy the equivalent ring from Signet/Ernest Jones. Can they do this? Any ideas please!! Thankyou in advance for any thoughts!!

mattymoo

The answer you need is contained in para 6 of this article on the Financial Ombudsman Service (but read the whole article).

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/10/oct-repair-replace-cash.htm

Basically, if you took this complaint to the ombudsman, they would find against the insurer, in your favour. So, call the insurer and quote the October 2001 edition of Ombudsman News, repair, replace or cash article. It should cause them to back down.

This really does beg the question as to why insurers still try to do this. The decision was made by the Ombudsman 6 yrs ago and I am not aware of any contrary decision at a later date. Do they just do this knowing that 95% of policyholders will tow the line?

whippet

Sorry for the delay in thanking you for your very helpfull information!!! I have spoken to Zurich today and quoted the the October 2001 article. They put me on hold and then came back saying that they were entitled to offer me the discounted value of £1369 or I could use their nominated supplier. They said that the claim had been "validated" and that the ombudsmen wouldn't find against them - stalemate!! I will look into it further, but anymore thoughts would be greatly appreciated!!!

mattymoo

In the front of the policy book there should be a formal complaints procedure. Put it all in writing and indicate that you intend to refer the matter to the Financial Ombudsman Service if they do not reconsider.

They then either pay up or issue a deadlock letter (sort of stalemate as you put it) indicating they have exhausted their complaints procedure. You are then free to go to the FOS and ask them to investigate. This will cost the insurer £400 straight off (no refund if the FOS find in their favour) so most try to avoid it. Will not cost you anything so you have nothing to lose.

I am unsure what they mean by "validated" though. Did the person you spoke to elaborate on this? Sounds like part of their claims procedure but without them explaining what it means, the term is meaningless.