Lost bracelet - insurer offers replacement via unsuitable stores of less than one-third in cash

LiverpoolLiz

I have had my contents with John Lewis for more than five years and have never – thankfully – needed to claim. Now I do: a bracelet, given to me by my sister for my 50th birthday, apparently dropped of my wrist while I was out (ironic, considering it’s been on my wrist for years that it should be lost locally). I called and registered the claim, giving them the details (a Figaro link, 4.64mm wide, 18 carat gold – it was bought in Spain) and I was contacted by a third party: LMG Jewellery of Bath.

They asked for a photo of me wearing the bracelet, which I was able to supply (three in fact), and I was subsequently called and advised that it was worth £1,100, which means that I would get £900 after the excess. This could be used to replace the bracelet at personaljewelleryservice.com, or at Mappin & Webb, Goldsmiths or Watches of Switzerland. If I wanted to go elsewhere, I would get only £300 – which I guess gives some idea as to the profit in all this.

It turns out the three stores all belong to the same group, selling very similar and rather flash high-end jewellery that in no way equates to what I’ve lost – WoS sells only watches. Personalyjewelleryservice.com has a great range of prices but nothing close to a like-for-like replacement. I’m not wild about buying something like this online.

Am I bound buy it from their unsuitable preferred sellers or face a big loss – which would make the claim pointless, given that my premium will doubtless increase? I would rather be fully reimbursed and have a local jeweller replace it for me. I resent being pushed into this – particularly at a moment when I’ve no desire to go into town and trail around various jeweller’s. Thoughts please.

Sandtree

Insurers are entitled to reduce the settlement if the policyholder demands cash to the level of corporate discount they receive as long as the approved supplier can provide a suitable replacement. £900 of jewelry vouchers certainly wouldnt become £300 in cash applying that principle. At a former client's we in theory received the corporate discount from the Goldsmiths Group and from memory it was 30% on jewelry and 25% on most watches.  It maybe that there is an additional volume based kickback in addition to the headline discount but it wouldn't be the same again!

What is wrong with the items at Goldsmiths, as the lower of the two brands? If these are "too high end" you can ask if they have other panel suppliers (if an insurer covers a range of customer socio-ecomonic spectrums their suppliers tend to too) but its likely to be another national chain.

silvercar

You can read similar case history from the ombudsman and decide if it is worth pursuing a complaint. Worth telling the insurer that you have read up on this.
https://www.financial-ombudsman.org.uk/files/2927/92.pdf
Pages 4 - 6 have jewellery cases.