Norwich Union Don't Pay Out......

[Don4071]

I unfortunately lost my engagement ring, which was insured through Norwich Union for £3,300(ish).

However, when I made a claim - Norwich Union would only pay £2,700 OR £4,200 if I bought a replacement through a particular chain of jewellers.

My question is:

If the ring was insured for a particular amount, and I'm paying a premium for that item at that amount - how comes the insurance companies don't have to pay out that amount.

Hope that all made sense!

Anyone got any guidance as to what to do

Thanks

what does it say in the insurance paperwork, the answer lies within it.

[xrchris]

Originally Posted by Don4071

Norwich Union would only pay £2,700 OR £4,200 if I bought a replacement through a particular chain of jewellers.

is the £2700 for a cash settlement and the £4200 for a replacement ring?

[Glenn UK]

you dont have to accept thier offer i believe, i ahd something similar when i lsot my wedding ring, i bought our rings in duabi and so saved a lot compared with the uk.

whe i lost my wedding ring they offered to pay me what it cost in dubai.

I rejected it on the basis that i uinsured it in the uk and paid the uk premium. on top ofthat i didnt know when i was going to go back to dubai.

They paid the price if got quoted form my local jewellers

If they have taken the moeny for the insurance then they cannot logically refuse to pay the cost, i dont think they can force you to use thier jeweller either.

YOu need to go back to them and set out your reasons for what you want, get estimates stuff like that to send them for the ring you want in replacement of the lost item.

JMHO

Glenn

[Don4071]

Excuse me but I must be having a stupid moment.....

I told Norwich Union that I was struggling to find a suitable replacement ring with the Jewellers they had allocated, and if I could use another jewellers. Here's what they said.

I can confirm that you can use another jeweller if you wish to. We would require you to submit a quote in writing from the jeweller you wish to use. We would advise that Insurers liability will be subject to the discounted amount that Insurers would have paid Goldsmiths (jewellery shop). The maximum amount payable would therefore be £xxxxx this is net of the policy excess.

I don't get it. Why would they offer me less for finding a replacement ring with another jewellers, rather than Goldsmiths? In particular, don't understand 'I We would advise that Insurers liability will be subject to the discounted amount that Insurers would have paid Goldsmiths'.

Can anyone who speaks Insurance jargon, explain what this means in English - pls.

[Glenn UK]

they are saying they get a discount at goldsmiths and therefore they will only pay the amount they would have paid Goldsmith had they had the item you want.

You write back and say thank you but no thank you, the insurance covers loss on the basis of new for old and there is no term in the contract allowing the insured to specify a specific jeweller under any circumstances.

The insurance covers said item in respect of the replacement value and subject to the payment of any excess then the insured insists that the insurers settles the claim for the full amount based on selection of a similar item to the one lost/damaged.

Or something like that.

~Unless of course the contract does allow them to specify the said jewellers then you may have to think of something else. best to check i think

JMHO

Glenn

[Don4071]

Originally Posted by Glenn UK

they are saying they get a discount at goldsmiths and therefore they will only pay the amount they would have paid Goldsmith had they had the item you want.

You write back and say thank you but no thank you, the insurance covers loss on the basis of new for old and there is no term in the contract allowing the insured to specify a specific jeweller under any circumstances.

The insurance covers said item in respect of the replacement value and subject to the payment of any excess then the insured insists that the insurers settles the claim for the full amount based on selection of a similar item to the one lost/damaged.

Or something like that.

~Unless of course the contract does allow them to specify the said jewellers then you may have to think of something else. best to check i think

JMHO

Glenn

Thank you Glenn.

I've found this in Norwich Union policy, which may stuff me right up:

We choose to settle a claim by either repairing or replacing property, or by making a payment.

If we can replace property, any payment will be limited to the cost of replacement by our preferred supplier.

Then what's the bloody point of Sum Insured, if Norwich Union are going to use their preferred suppliers quote to replace items!

[mooreda]

I see this claim scenario time and time again and it makes me so mad because insurance companies are still trying it on. The fact of the matter is that if the insurer's supplier CAN NOT replace Like for Like then you are entitled to a CASH SETTLEMENT at the full value and NOT at the DISCOUNTED RATE i.e. what the insurer would pay its supplier. Insurers are not supported by the Ombudsman if they try and insist on replacement through it's suppliers. See repair, replace or cash? - october

The Ombudsman says: -

"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.
In some cases, policyholders may not wish to purchase a replacement for the damaged or stolen goods. This may be, for example, because their circumstances have changed, or the object had sentimental value. Where this is the case, we will normally ask the insurer to agree a cash settlement".

MY STRONG ADVICE IS POINT THIS OUT TO THE INSURANCE COMPANY AND IF THEY STILL TRY AND FOB YOU OFF COMPLAIN TO THE OMBUDSMAN. IT'S A FREE SERVICE.

[Don4071]

Thanks very much Mooreda. I'll put this argument to Norwich Union and wait for a good response from them.

[DazzaC]

Don,

Hi. Sorry this has caused you frustration. Drop me an email with your details (policy number). I'll get it looked at.

darren.cornish@norwich-union.co.uk

Darren Cornish, Head of Customer Experience, Norwich Union