LloydsTSB Contents Insurance Claim - Have to go to Currys?

Question

My daughter is insured with LloydsTSB has recently made a contents insurance claim for some audio equipment. They've passed the claim to another company who sent her a voucher to replace the items at insist she pays the £50.00 excess by card before she can use the voucher.

Is this normal please?

Answer 1

Quoted from Ray's post "You can complain and will 'probably' get a cash settlement, please do NOT accept a lower amount. The insurer has an obligation to replace the items any deal they have with a supplier is their business."

I'm afraid that is incorrect.  If a policyholder chooses to accept a cash settlement instead of a replacement from an approved supplier, the insurer will only be required to pay to the policyholder the amount which they would have paid the approved supplier, ie the discounted sum.  

So I think it is best to accept the Curry's voucher unless there's something you really don't like about them.

Answer 2

I share your distaste for Curry's, however I would say that if they carry suitable replacement items for those you are claiming for, the insurance co has met it's obligations.

I agree they almost certainly have a deal with Curry's and get a discount on the voucher, I guess Curry's are keen because they are guaranteed a sale and will probably try to sell you something more expensive whilst you are there.... 'well for only 100 quid more...etc etc'

Paying the excess yourself is a new one on me and not one I'm happy to hear of either. I assume they've given you a full value voucher so you end up the same, but still. Again they haven't done anything wrong by doing it this way, but I like you dislike the practice.

You can complain and will 'probably' get a cash settlement, please do NOT accept a lower amount.  The insurer has an obligation to replace the items any deal they have with a supplier is their business.

To be honest I reckon if you moan long and loud enough you'll get what you want. The real question though is, do you want the hassle or can you suffer Curry's this once just to get it over and done with.

You have my sympathy and best wishes either way !!

Answer 3

Most insurers and/or loss adjusters have discount agreements with retailers so the amount they will actually pay to the retailer is less than the high street retail price. The excess would need to be paid first so that when she gets the replacement goods the full amount has been paid.

A cash settlement can sometimes be negotiated if the claimant insists but it will be less than the full value of the goods as it will be limited to the discounted amount the insurer would have had to pay if its chosen provider had been used.

So yes, it's normal.

Answer 4

It can be the case with some insurers that you are required to pay the excess first, it is not unusual. However although I have heard of a voucher being issued before, in my experience it is not common place. Were you to pay the excess then I've no doubt that you would then be unable to dispute issue of the voucher. My advice is that if you dispute being issued with a voucher - say so. Refuse to pay the excess until you have assurances you will receive a cash settlement if that's what you require. If you are refused a cash settlement then pursue it as a complaint - it will cost far more in time (and money should it go as far as FSA) to defend the principle of issuing you with a voucher, than to just issue you with a cash settlement. Basically I am unsure whether you have to accept a voucher so I would proceed on the basis that you don't until you discover that you do.