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Ask the insurance expert

Replacing a watch can't be this hard

Friday, 16 May 2008 17:16
A reader from Tyneside wants to know why her insurance company is making her jump through hoops to replace a lost watch on her home insurance.

Ian Durell, myfinances insurance expert from the Only Group, which includes onlyinsurance.com tackles the issue.

Lesley Blair asks: I have claimed on my house insurance for my tag heuer watch which I lost while out shopping. The claim went to a valuer who valued the watch at £750 at today's value. I have no problem with that at all, the problem I have got is that my insurance company passed my claim over to Signet Group who phoned me and wanted me to first pay them a £50 excess before they would issue a voucher that I could use in only one jewellers.

I had already phoned the shop and knew that they did not have the model of watch that I wanted.

I phoned my insurance company, which now wants me to go over to the jewellers who do have that model and then supply them (the insurance company) with the details so that they can send this for something called consideration.

All I want is to go and replace my watch at the jewellers I bought my original watch from. What advice would you give me here please? I have all original documents and receipts, I do not want to go traipsing around town on the whim of the insurance company. Thanks

Ian Durrell, head of business development at Only Group says: Unfortunately, when it comes to jewellery there are many fraudulent claims and this is why insurers try to insist that claimants replace the original item with the same. By using a selected outlet insurers can control the process and make sure this happens. Personal items will be given a current value date at the time of loss. Cameras, for instance, are the worst for depreciation and in the case of your Tag Heuer watch, this would also reduce in value. A Rolex or Breitling could be worth more.

The insurers are considering the claim as their preferred supplier does not stock that model and they simply need verification from the other jeweller that he can offer this watch model.

You need to wait for the outcome.

If the outcome is not satisfactory, ie, you have to purchase a similar watch that you do not want, you can lodge a complaint with the Financial Ombudsman Service (FOS). This move very often forces most insurers to back down in the event of most normal claims, although in some cases they will fight to uphold their decision if they feel strongly enough.

These procedures are put in place to prevent fraud but it does come at some inconvenience to the genuine claimant. If these procedures were not adhered to then everyone would see a rise in premiums to compensate for non genuine claims.

If you have a question for Ian, go to the myfinances.co.uk Ask the Insurance Expert section.

Only Group is authorised and regulated by the Financial Services Authority.





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