Settlement of claims with gift vouchers

mistymike

I am trying to finalise my elderly mother's insurance claim after her house was recently burgled. The bulk of her claim is for jewellery and her insurance company, the co-op, have referred this part of the claim to Signet, loss adjustors. The value of the jewellery has been agreed but only if my mother accepts gift vouchers to be used at two jewellery firms owned by Signet! A cash settlement would be somewhat of a lesser value. My mother doesn't want vouchers and doesn't want to be told from where to get any replacement jewellery. Has anyone else had experience of this and how can get we get the full value in cash so she can buy replacements from where she wants to?

Thanks

telly-addict

The following link to the Financial Ombudsman Service may be of assistance:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/10/oct-repair-replace-cash.htm

Will all depend on the individual circumstances of your mother's case, but Co-op cannot insist on replacment through Signet. If Signet are able to offer exact replacements (which I suspect is most unlikely), then Co-op may have a better case to offer the cash equivalent of what Signet could replace the items for. Otherwise suggest that you refer Signet to this Ombudsman ruling and hold your ground.

Good luck.

researcher

A similar situation happened to my mother-in-law, who was in her 80's at the time. Her grand-daughter who was handling the claim immediately said NO, got on the phone to the insurers and gave them a very hard time regarding the stress they were putting her grandmother through - threatened to make a BIG scene, involve the press etc etc. Got a cheque in the post for the full amount within the week.

Stick to your guns - the loss ajusters are trying to do what they're paid to do and save the insurers money. Remember - you've paid your premium are you are entitled to what it says in your policy. Unless they state that you must replace your goods from certain companies they cannot force you to do so. If you are unsure take all the information to your local Citizens Advise Bureau, who will give free impartial advice.

Good luck

howardtom4y

AS with all these issues it depends on the policy wording. Most insurance policies will give the option of how settlement is actualy achieved to the insurance compnay ie they can repair reinstate or give a monetary settlement. If insurers beleive that equivilant jewlery can be supplied via Signet and they are able to make savings on this by way of vouchers they are entitled to do so under most policy wordings.
Many people are happy with this arrangement as it gives them the option of replacing their jewelery with what they want. If this is not for you, then you eiither appeal to insurers better insticts or you threaten to make a fuss. Either way you want to play it best of luck

chillipepper_3

The only way around this is to visit their recommended jewellers and if they do not have what your mother wants then you can try and find a place that does and forward your own recommendation directly to the insurer.

If you do not find suitable replacements elsewhere then you can cash settle, but the insurer will only pay you the value of items from their recommended retailer.

I used to work for a large retail organisation and we gave 15% discount to insurance companies for their preferential business.
Here's an example:
if your claim value was £100 and you cash settled you would only get £85 back then obviously less any policy excess, sometimes £50. So the sum would only be £35.

Try and find a retailer with the goods you want not exceeding the original valuation and tell them you want to buy from them & stick by your guns.

telly-addict

chillipepper wrote:

If you do not find suitable replacements elsewhere then you can cash settle, but the insurer will only pay you the value of items from their recommended retailer.

I used to work for a large retail organisation and we gave 15% discount to insurance companies for their preferential business.
Here's an example:
if your claim value was £100 and you cash settled you would only get £85 back then obviously less any policy excess, sometimes £50. So the sum would only be £35.

This used to be the case and insurers will still look to settle on this basis. But this is not the view of the Financial Ombudsman Service - see the link that I included in my earlier post.

If a reasonable (and that term is always open to debate) replacement is not available and you want a cash settlement, stick to your guns and threaten to take the matter to the FOS. You can quote the FOS views expressed in their article and try to hold out for the full cash amount.

It's normally a case of holding your ground and not giving in too easily!

chillipepper_3

telly-addict wrote:

This used to be the case and insurers will still look to settle on this basis. But this is not the view of the Financial Ombudsman Service - see the link that I included in my earlier post.

If a reasonable (and that term is always open to debate) replacement is not available and you want a cash settlement, stick to your guns and threaten to take the matter to the FOS. You can quote the FOS views expressed in their article and try to hold out for the full cash amount.

It's normally a case of holding your ground and not giving in too easily!

Cheers, I didn't know this. It's been a while since I worked in retail and I agree it's certainly worth holding ground and not giving in.