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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25471
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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IF I HAVE AN INSURANCE CLAIM HONOURED CAN THE INSURANCE COMPANY

Resolved Question:

IF I HAVE AN INSURANCE CLAIM HONOURED CAN THE INSURANCE COMPANY RESTRICT MY CHOICE OF STORE e.g. SPECIFY 'ARGOS' FOR MY REPLACEMENT PURCHASE?
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I ask which insurer you are with and if you have a link to your insurance policy please?

Customer:

My camera equipment was insured by Jessops through Domestic and General. The situation of any claim was not conveyed to me!

Joshua :

Thanks. Is there a reason you would not want to use a specific retailer please?

Customer:

This retailer cannot provide me with the equipment I wish to purchase

Joshua :

Thanks. Finally are looking to buy the same camera that was insurer or a different one? If the latter, is the camera you wish to purchase of largely equivalent spec to that insurered?

Customer:

I wish to upgrade !

Joshua :

thank you. Typically, insurance policies will provide new for old cover but reserve the right to the insurer to decide whether a claim should be settled by a repair or replacement or cash settlement. where a claim is decided to be settled by replacement, again, most insurance policies provide that the insurer can nominate a supplier. The reason insurance companies typically do this is because they negotiate a discount arrangement with a particular supplier.

Joshua :

and whilst insurance companies typically have the above rights, they are required by law to exercise them reasonably. If you can demonstrate that the supplier they nominate cannot supply the equipment you wish to replace your camera with then you can request a cash settlement instead of a replacement camera. However, it has been held that where the customer can reasonably request this as above, the insurer is entitled to deduct the element of discount they are able to obtain fire their retailer of choice.

Customer:

I have been provided with a voucher for Argos, wish to upgrade my camera bur they do not stock an upgrade though it is the same make I wish to purchase.

Joshua :

accordingly, if you wish to purchase a camera elsewhere which is not available from the retailer of the insurers choice, consider reverting to the insurer advising them that their nominated retailer does not stock the replacement equipment you wish to purchase and accordingly request a cash settlement. as above, do be aware that if the insurer has negotiated a discount arrangement with their nominated retailer, they are entitled as above to deduct the element of discount they have negotiated from any cash settlement and therefore you may end up with a lower cash settlement than the value of the voucher

Joshua :

however, if you are happy with this eventuality then the above is open to you.

Joshua :

if you are not satisfied with the insurers response, you can escalate the matter to a complaint and if you remain unsatisfied, you can ask the financial ombudsman to review the insurers decision. They have the power to order the insurer to make a different decision if they consider the insurers position unreasonable

Joshua :

there is some guidance published by the financial ombudsman you may find very useful to read to see how they treat such complaints received from insurance customers in this respect at the following link:
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/92/92-insurance-claims.html

Customer:

I thank you for the information you have supplied. It does clarify matters. [email protected]

Joshua :

A pleasure.

Joshua :

If I can assist any further as the situation develops please do not hesitate to revert to me

Joshua :

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though.

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