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  • FIRST POST
    Former MSE Debs
    Real-life MMD: Should I return £2,000 insurance cash?
    • #1
    • 14th Sep 12, 10:48 AM
    Real-life MMD: Should I return £2,000 insurance cash? 14th Sep 12 at 10:48 AM
    Money Moral Dilemma: Should I return £2,000 insurance cash?


    I accidentally put my treasured old Omega watch through a washing cycle and when it came out, it wasnít working. I sent it to my insurer who sent it back with a Ďbeyond repairí note and a voucher for £2000. The thing is, itís now in perfect working order again. Should I send back the vouchers and get my £100 excess back or keep quiet?


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    Last edited by Former MSE Debs; 18-09-2012 at 4:51 PM.
Page 1
    • telsco
    • By telsco 18th Sep 12, 10:06 PM
    • 101 Posts
    • 429 Thanks
    telsco
    • #2
    • 18th Sep 12, 10:06 PM
    • #2
    • 18th Sep 12, 10:06 PM
    Easy. Spend the vouchers and keep quiet.
    You claimed and they paid, all done in good faith.

    Although you might want to change insurer before you put it in the wash again
  • bogwart
    • #3
    • 19th Sep 12, 2:16 AM
    • #3
    • 19th Sep 12, 2:16 AM
    I'm surprised they returned the watch as well as paying out on the insurance policy. It would be wise to check whether the watch is in fact legally their property, which is what usually happens with cars.
  • mr-tom
    • #4
    • 19th Sep 12, 6:50 AM
    • #4
    • 19th Sep 12, 6:50 AM
    I think that if they returned it to you, it is fine to keep it.

    So what if it has begun to work again, the innards may be corroded or something, so in 2 months, it may die again. That's why the insurer wrote it off; it has become a bad risk for both of you.

    If the vouchers expire, then convert them to cash as best you can, stick it in the bank and don't spend it as one day, the watch will conk out, and in the meantime, you probably cannot re-insure the watch as it has already been written off.
    • janiebquick
    • By janiebquick 19th Sep 12, 7:03 AM
    • 405 Posts
    • 507 Thanks
    janiebquick
    • #5
    • 19th Sep 12, 7:03 AM
    • #5
    • 19th Sep 12, 7:03 AM
    The daft thing is that insurance companies don't have a 'returns' department and probably would not know what to do with the vouchers if you did return them. They are cheapskates anyway if they gave you vouchers and not cash.

    Spend them. If your conscience troubles you, give some of it to charity.
  • bob_the_tom8to
    • #6
    • 19th Sep 12, 8:22 AM
    • #6
    • 19th Sep 12, 8:22 AM
    I think you should give it back. I know it sounds bizarre to give back to an insurance company as they are often so hard to claim from but I believe that if you try to live honestly then you will always be blessed. You never know, in trying to give it back they might even tell you to keep it, as the above poster said they may not even have a returns department!
    'I love you, O Lord, my strength. The Lord is my rock and my fortress and my deliverer, my God, in whom I take refuge, my sheild and the horn of my salvation, my stronghold.'
    Psalm 18:1-2
  • ngoodman
    • #7
    • 19th Sep 12, 8:23 AM
    Whatever you do, you will still pay.
    • #7
    • 19th Sep 12, 8:23 AM
    If you do nothing, your insurance premiums will probably rise until you have repaid the claim. If you return the money, your insurance premiums will probably rise - because you made a claim. Whether or not they have had to pay out, future premiums will probably be decided on the claims you have made - not the payouts you've had. As with almost all insurance policies, you will lose out, whether you claim or not. As someone has already said, the watch is probably damaged and could stop working at any time.

    Keep the money and mitigate your losses.
    • mr-mixalot
    • By mr-mixalot 19th Sep 12, 8:46 AM
    • 77 Posts
    • 62 Thanks
    mr-mixalot
    • #8
    • 19th Sep 12, 8:46 AM
    • #8
    • 19th Sep 12, 8:46 AM
    Sell the watch, put the money in the bank and then but a new one with your voucher.

    I had the same scenario when I dropped my mobile into the loo

    I got a new phone and somene got my old phone (still working after 2 years with no adverse affect) for a bargain price

    Win Win for all parties concerned except the insurance company but I pay them enough so they get no sympathy from me
    • spursliz
    • By spursliz 19th Sep 12, 8:55 AM
    • 30 Posts
    • 61 Thanks
    spursliz
    • #9
    • 19th Sep 12, 8:55 AM
    Shame on you!
    • #9
    • 19th Sep 12, 8:55 AM
    I couldn't believe those of you who say keep the cash and the expensive watch! This is why we all have to pay huge premiums - insurance fraud is theft, plain and simple. Please, return the money less your £100 excess.
  • Ligur
    Hardly fraud as the insurance company inspected it and "wrote it off" it may be that they classed it as beyond economical repair. Keep the money as it's their mistake. Perhaps they should change the watrchmaker who does their inspections.....
    • markdavey
    • By markdavey 19th Sep 12, 9:33 AM
    • 609 Posts
    • 252 Thanks
    markdavey
    I couldn't believe those of you who say keep the cash and the expensive watch! This is why we all have to pay huge premiums - insurance fraud is theft, plain and simple. Please, return the money less your £100 excess.
    Originally posted by spursliz
    How is it Fraud?

    The watch was sent to the Insurance Company for them to assess. They assessed it and deemed it Beyond Repair. They then issued the cheque for the claim and they returned the watch (which they had had assessed as BER). TBH they should use better assessors...

    Now, if the watch had not been sent to the Insurance Company for them to assess and it returned to working order after the company had paid out, I might agree that there is a bit of a grey area but certainly not in this case...
  • kna
    If I took an iPhone to the Apple store (which has water damage indicators), they'd take one look at those and say it needs replacing. If it suddenly started working after I'd got an insurance replacement, those indicators still say it's been submerged in water. Just because it does everything it did, it's still a damaged device not worth it's original value.

    They've reviewed the damage and paid because it's beyond economical repair to bring the watch back to it's condition before you washed it. If inspected by a watchmaker their skill would probably identify it's been through the wash and is worth far less.

    You're not defrauding them out of £2000 worth of watch, you've got a damaged watch worth not nearly as much, which just so happens to still tell the time (for now).

    Morally however, you should absolutely spend the money on a replacement, that's what it's for and if you sold the old one, you should really explain that it's been through the wash and is an insurance write off. Otherwise, you're just screwing over someone else.
    • Barryfan
    • By Barryfan 19th Sep 12, 9:46 AM
    • 63 Posts
    • 64 Thanks
    Barryfan
    The insurance company made the decsion to "write off" your watch, so I don't think you've anything to feel guilty about by accepting the voucher. The watch may be working now but could stop anytime. Insurance compaies are never the "losers" anyway and as one prevous poster said, if you stay with the same insurance company your premium will probably go up next year. I know mine did when I claimned for damage caused by a leaking washing machine!
    • pollypenny
    • By pollypenny 19th Sep 12, 10:40 AM
    • 25,127 Posts
    • 65,777 Thanks
    pollypenny
    If it was was a small local company, I would admit it. However, with a big company, £2000 is a drop in the ocean.

    Their mistake; their loss.
    Member #14 of SKI-ers club

    Words, words, they're all we have to go by!.

    (Pity they are mangled by this autocorrect!)
    • pennypinchUK
    • By pennypinchUK 19th Sep 12, 10:41 AM
    • 382 Posts
    • 732 Thanks
    pennypinchUK
    Well, whatever SHOULD happen, I doubt very much whether many people would return the £2000 to their insurer, regardless of what they say on moneysavingexpert.com

    I'm pretty certain most people would take the voucher and keep quiet, whether that's right or wrong. They'd justify it by rationalising that they'd given their insurer the chance to examine it. And hey, what's to say it'll keep working....

    You need to examine your own conscience, and not take any notice of what people claim they'd do in the same circumstances!
    • colinlyne
    • By colinlyne 19th Sep 12, 10:43 AM
    • 8 Posts
    • 17 Thanks
    colinlyne
    KEep it
    Keep it. They have, and will, make a fortune from you and others. Well done.......I won't tell anybody!
    • Augustus the Strong
    • By Augustus the Strong 19th Sep 12, 10:47 AM
    • 304 Posts
    • 313 Thanks
    Augustus the Strong
    Ooh, actually a real dilemma this time - you know in your heart that you shouldn't keep the money and you are robbing the insurance company, but... We all hate insurance companies who are robbing us left right and centre to give us 'peace of mind', and the fact that they have inspected the watch and written it off themselves just about justifies keeping the £2000. I think I'd say keep the money (what else can you do, anyway?) and put it out of your mind.
    • tgroom57
    • By tgroom57 19th Sep 12, 10:52 AM
    • 1,317 Posts
    • 12,699 Thanks
    tgroom57
    Hang on a mo while I go find an Omega watch to buy. A watch that survives the wash is worth having.

  • AliBaliBee
    Keep the money. You claimed in good faith and told the truth at the time. Who knows when your watch will pack in again, it could happen tomorrow, and when you try and claim i can imagine that would be somewhat difficult!

    The trouble with insurance companies is that they keep a record of how many times you claim whether you get money from them or not. So you will have a claim recorded against you now. If you give the money back you will still have that claim recorded against you and your premiums will still rise next year despite the fact that you handed the money back. Even if you have a protected bonus, as i believe some household insurances do nowadays. I should get one of those....!

    In an honest world then you would give the money back and the claim would be purged from the system and it would be as though it had never happened, but thats not the way insurers operate.
  • Brian Steele
    They won't know what to do if you send it back
    In my experience, insurance company accounts departments have no clue what they are doing. I am an honest person who would always return overpayments or point out when someone has undercharged me or given me too much change, but I have long since given up where insurance companies are concerned.

    I run a business which pays huge insurance premiums. Sorting out accounting errors is like pulling teeth - actually worse than that, because the teeth just never actually come out.

    One year, they took a £2000 direct debit that was £8 too high. Being sick of all their previous mistakes, I reversed it using the Direct Debit Guarantee, quite happy to pay them the £1992 when they had got their act together.

    After more than 10 years, I am still waiting.
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