Castelan Furniture insurance

AJM1984

Good morning,

I would really appreciate some help regarding an insurance company called Castelan Group.

I purchased insurance with them, via Argos, for my bed which has recently fallen apart. They have accepted it as accidental damage; or a structural defect, they weren't clear, and have admitted that due to repair costs being too high they would prefer to settle my claim with vouchers towards a replacement.

However, the amount of replacement vouchers they have offered me is lower than the original price of the bed and lower still than it would cost for me to purchase a like for like replacement.
They have insisted that they are offering me a lower payout because during the purchase process I used a discount code, so they are reducing my claim amount by the same discounted amount.
I asked why this wasn't in their terms and conditions to which the (abhorrent and rude) representative replied - "Because nobody really uses discount codes."

By this logic, if I had reduced the purchase cost to £0 using codes, coupons, gift cards etc, my insurance payout would also be £0.

Is this normal practice because it seems utterly bizarre!

Quentin

If this is a proper insurance policy then the wording should confirm the exact cover you have and what happens in the event of a non economic repair.

And if this is an insurance policy (rather than a warranty) then your route when unhappy is a complaint in line with their complaints procedure.

Then if you are not happy with the response or they ignore you for 8 weeks you can escalate to the FOS for their adjudication at no cost to you

(Though no FOS if you are a warranty client rather than an insurance client)

AJM1984

Thanks for the reply, Quentin.

It is, supposedly, a genuine insurance company. They work in partnership with Argos at the very least; which is where I made my purchase of both the product and the insurance.

I have asked them to escalate my claim and made a formal complaint through the representative I last spoke to. I'm awaiting a call back from a supervisor but since I started my claim on the 7th of August they haven't once responded to my emails or called back when they said they would. I'm not optimistic.

The terms and conditions are very simplistic and it only states that a cash payout would cause a reduction, not vouchers. I can't find anything stating that they will remove the costs of any discounts from a payout either.

If I'd have used a 50% off discount code I'd be even worse off!

Quentin

Are you sure you have an insurance policy from them though?


Their complaints procedure will be set out in the docs - what does that say about the FOS?

AJM1984

It essentially says that if they can't resolve my complaint within a few days that I'm free to take it to the financial ombudsman as and when I see fit.

As far as the policy being through them, I'm pretty sure they're a branch of a much larger insurance group, but I'm only currently dealing with Castelan as they're the named company on my insurance certificate.

Quentin

Wording doesn't sound too standard/FOS compliant.

But if they mentioned FOS it does sound an insurance not a warranty

As they haven't responded send a written complaint and keep a copy to get a paper chain you can use if necessary

AJM1984

Thanks, Quentin. I appreciate your time and responses.

I'll do just that. I've tried to encourage them to reply to emails but they're ignoring me for weeks at a time and will only talk to me on the phone.

I've already sent an email declining their offer and explaining why I'm asking for the full amount instead. Fingers crossed!

I've just never heard of a discount code lowering an insurance pay out. It almost defeats the point of paying for insurance or using discount codes.

Chickenlips

Is the cover new for old, or on an indemnity basis?

New for old would be based on a like for like basis, irrespective of the price paid. Unless, of course, you got a staff discount, in which case they may argue that you would be entitled to the same discount again.

If it is on an indemnity basis, they would be able to make a deduction of wear and tear to the replacement value.

FOS rulings are published on their website. If you Google 'FOS rulings' it should be one of the first links. You can filter by word search and insurance type. Tick the 'insurance excluding PPI' and then search for the keywords that relate to your own issues. Don't forget to change the date parameter - I normally look within a three year window. This will give you an idea as to how many other people have had this issue/complaint, and how the FOS ruled.

If you find evidence that the FOS will rule in your favour, jot down the case/ruling number and include these/this within your response to insurers. They will have to pay £550 (I think) for the claim referral, the higher cost (if you win your case), interest on your claim costs (8%), and potentially, but not always, compensation for upset and delays. If your bed was £2,000.00 and the settlement they are offering is £1,500.00 they may realise it's economical to settle at the retail value than to go via the FOS.