Insurance Index linked or not?

[ssett]

I am having a problem with my insurance company and a claim. They are pointing to a clause that says that a particular item isn't covered for index linking and won't pay the value it was insured for because of this clause. I have discovered they have been increasing the insured value for it each year, is this not index linking?

 

So which is right, they pay me less for wear and tear or the index linked full value?

 

But should they have been doing this index linking for the item in the first place if their own clause states differently? They have been getting more insurance money as a result!

[unclebulgaria67]

All policies include a clause that some items will have a deduction for wear & tear in the event of a claim. This is usually clothing and linen. When you provide details of the age of the item, they will make a percentage deduction using their guidelines.

 

Your cover is per the Insurance contract you were issued with. If you are unhappy the policy booklet will contain details of the complaints procedure and that is what you should follow. Put a complaint in writing, asking for the basis of settlement to be reviewed. Give them any information which you think justifies a better settlement. Someone I know had a lot of designer clothing stolen and they managed to negotiate a better settlement.

[ssett]

Thanks for the reply, will do that.

Should they have been increasing the value for the items?

[unclebulgaria67]

Thanks for the reply, will do that.

Should they have been increasing the value for the items?

 

They will index link the sum insured, as per the policy terms. It is up the policyholder to adjust the policy to the sums they think reflect the risk.

 

Are you saying that you specified an item. e.g Mink Fur Coat at £2000, which was then index linked ? If this is so, then you have cover for the amount shown as specified under the policy. If you did not specify an item, then the normal terms of the policy apply..

[ssett]

Yes, they were specified and the insurance company increased their value each year but now saying that because of the type of items they were then they say the other clause applies instead

[unclebulgaria67]

Yes, they were specified and the insurance company increased their value each year but now saying that because of the type of items they were then they say the other clause applies instead

 

That is not my experience. If you specify an item at say £2k, you are paying the premium for that level of cover.

 

Suggest a complaint and advise them that you will involve the FOS if you have to, as you believe that a wrong decision has been made in regard to a specified level of cover for an item.