Fast_Blue_Scooby

I need a quick answer as I am trying to get this sorted out today.

Moderators, this is not a car insurance question so please keep in this forum please as I need an answer ASAP.

I bought item A for £2100 a few years back, however it was damaged and was not repairable, fortunately I was covered 'like for like' with my insurance company.

The insurance company used another company for the replacement. As item A was no longer available, this other company gave me a limited choice of what I could have up the value of £2100. So after looking at what I could have, I selected item B which in the shops was just less than £2100.

Item B was dispatched, unfortunately it had an inherent fault and after several visits by an independent company, was deemed to be not fit for purpose. Rather than have item B again, I asked if I could select another item of my own choice. So after a bit of research on the web, came up with item C. However the replacement company could not supply item C so they suggested I get in touch with my insurance company and get a cheque instead. This would mean that I could buy item C myself from the high street. Item C was again just less than £2100.

However after several phone calls to the insurance company and the replacement company, it transpires that the insurance company paid only £1700 for item B as it was bought at trade price by the replacement company who have several business accounts with certain suppliers.. There was no way I could have got item B for £1700 myself. However the insurance company is only willing to give me a cheque for £1700 so I can buy the item of my choice. However with item C being worth around £2100, I am stuck!!

IS THIS LEGAL? Should I not be getting the full market value of the street price for my replacement item. The insurance company had originally allowed me to select an item up to £2100, the original price I had paid. Now they are saying I can only have the trade price what they paid for item B. This seems a tad unfair and would leave me out of pocket.

CAN ANYONE HELP PLEASE?

MANY MANY THANKS IN ADVANCE.

Scooby Dooby Blue

Wasn't there an excess on your policy thus reducing the cash amount paid out?

Paul

Fast_Blue_Scooby

Excess was £50 which I have already paid to the insurance company.

Should I be demanding a cheque for £2100, rather than the suggested £1700?

Scooby Dooby Blue

Yes

If you've no joy with the file handler, get in touch with the insurance companys quality control manager.
No joy there, next step's the chairman then onto the Ombudsman.

Quite a long, drawn out process but you can accept the cheque for £1700 in the meantime but not as full settlement of the claim (get that part in writing).
If it went all the way, it'd probably take you about 3-4months to recoup the further £400 you feel you're owed.

Paul

Shark

Ditto Paul

But be prepared for a long fight.

Good luck

David

Fast_Blue_Scooby

Thanks for the replies.

I phoned up the insurance comapny to complain about only getting £1700 as a settlement and the person I spoke to thought it was a bit unfair not to get the full amount and would look into it. I took his name.

Later I got a phone call back from the insurance company but from a different person and was told that because the insurance company had already paid the replacement company £1700, they said that the replacement company owed me the £1700 and not the insurance company! Also this person, name noted, was adamant that I could only claim £1700 as a settlement. Anyway I phoned up the replacement company and you guessed it, they said the insurance company owed me the money!!

So back onto the phone to the insurance company and they agreed that they would be responsible for paying out my claim. They would reclaim the money back from the replacement company.

Today I received a cheque today for only £1700.

What should I do next? The letter with the cheque states 'this payment is in final settlement of your claim.'

However I still have item B in my possession as the replacement company still have not picked it up!!!

Should I write a letter and push for the £400 which legally I think I am entitled to?

Is the insurance company pulling a fast one?

Should I hold onto item B until it is sorted?

Thanks.

GM

What does your policy say? Does it allow insurance co to replace an item rather than pay you the cost of replacing it?

Scooby Dooby Blue

Call your insurers and let them know you are cashing the cheque but it's not as final settlement of the claim.
Most insurers have paperless offices now so verbally advising this should be adequate. Again, note who you speak to and the time/date.
You now need to go up the chain of command in the hope someone agrees with your point of view.
Next, QC Manager, Chairman, Ombudsman.

Good luck...

Paul