Mothers Jewelry Lost - Insurance Agreed

Joey122

Hi All,

My mum lost her favourite ring which had a red ruby on the top.

The inurance have investigated and agreed to pay 1500 pounds.

My mum bought this for 1100 pounds 20 years ago.

Two questions:

1) Has anyone else had a Jewelry insurance claim processed in the past? Did you accept the first offer? I dont understand how they came to such an assessment that it was worth 1500 pounds - Can I ask them to explain it?

2) They have offered a like for like replacement at a really dodgy Jewelry store which I dont like. I d much rather replace the item from the middle east which is where I bought the original item - Do they offer cash replacements / provide a list of other retailers?


If anyone can share their thoughts of the claim process after the number was agreed it would be most helpful

Thanks to all!

Joey122

Any ideas most appreciated.

Cheers

FlameCloud

The £1500 sounds quite like a single article limit, so if its wasnt specified then this is all you would get.

They normally get the value of it through speaking with the owner, asking questions about the size, carat etc. If your mother cannot prove that it is better than normal quality she wont get it.

If you didnt declare the item to customs either I wouldnt push them too far on it.

Joey122

FlameCloud wrote: »

The £1500 sounds quite like a single article limit, so if its wasnt specified then this is all you would get.

They normally get the value of it through speaking with the owner, asking questions about the size, carat etc. If your mother cannot prove that it is better than normal quality she wont get it.

If you didnt declare the item to customs either I wouldnt push them too far on it.

Thanks - Thats really helpful

Do you have to accept their company that they have chosen?

FlameCloud

Yes and no. If they can replace the item directly with a suitable replacement then they can 'force' you to accept a lower value if you want cash (due to their discount) however if they cannot then the FOS doesn't consider it unreasonable for a full cash payment.

Joey122

FlameCloud- Thanks Very much

Who exactly makes the assessment of whether they can replace it or not?

Any ideas?

silvercar

They cannot force you to go to certain shops. The FOS have ruled on this.

See here:

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

"Opting for ‘replacement’ is only a reasonable option on the insurer’s part if the object claimed for can be replaced. If the object is antique jewellery, for example, then it is not open to the insurer to insist the claimant buys a modern replacement from a chain shop. Similar issues arise whenever the replacement options are limited. It may, for example, be unreasonable to limit a policyholder’s choice of replacement to a particular retailer.

Policyholders should be allowed to choose where they purchase a replacement and they are entitled to a cash settlement if they cannot find an acceptable alternative. In such circumstances, we would not regard it as reasonable for the insurer to make a deduction from the cash settlement to represent any discount it would have got if the policyholder had bought a replacement from one of the insurer’s nominated suppliers. Nor would it necessarily be appropriate for the insurer to offer vouchers to the policyholder. If the option of replacement is not available, then the only way in which the insurer can indemnify a claimant is by a cash settlement. "

Joey122

Who is the FOS?

Basically they have recommended a really dodgy back street shop that I would never buy from and I m pretty disappointed....

Can I complain to anyone?

silvercar

Think we cross posted

FOS= financial ombudsman service

Joey122

We still have not heard from the insurers and we wrote to them a while ago.

has anyone managed to successfully claim cash in place of gold?

FlameCloud

Joey122 wrote: »

We still have not heard from the insurers and we wrote to them a while ago.

has anyone managed to successfully claim cash in place of gold?

Loads of people! If I'm happy with a claim I prefer to cash settle claims on site as to be honest its far easier and doesnt give our preferred suppliers an oppotunity to screw things up.

As I said above, if the insurers can replace a item directly, then they are entitled to give you a discounted value. However, in the case of jewellery it is far harder than something like a TV or laptop, so in the majority of cases the cash value will be at the full amount.

As you havent heard anything I would definatly contact them back. Advise that you want cash, and tell them to get it settled as quickly as possible.