Consumer complains that a cash settlement is not enough

Mobile Phone Insurance

Raju made a claim on his mobile phone insurance policy when he lost his phone. The insurer couldn't find the exact replacement so they offered a cash settlement. Unhappy with the outcome, Raju contacted our service for help.

What happened

Raju made a claim after losing his gold-coloured phone. The insurer accepted the claim and tried to replace the phone. There were no like-for-like replacements available, so the insurer offered Raju a cash settlement of £275.

The insurer said it would cost £275 to buy a certified grade A refurbished phone of the same make and model from a reputable dealer. The reputable dealer didn’t have any gold-coloured phones, but said that they’d been selling at the same price as any other colour.

Raju was unhappy and believe his phone is worth more, and complained to the insurer. Unhappy with the outcome, Raju contacted our service to make a complaint. 

What we said

We recognised Raju wanted a gold phone and had provided evidence of a online advert showing a price of £330. However, the policy said the replacement phone, and therefore any cash equivalent settlement, would be of the same make and model but not necessarily the same colour.

The insurer was able to provide screenshots showing refurbished phones (which included a warranty) of the same make, model and memory size as Raju’s phone, but in grey at £275.

We were satisfied the insurer had shown that it had offered enough money to  allow Raju to buy a phone of the same make, model and memory size. This is what it was obliged to do under the policy. We were satisfied that there was no gold-coloured phone available from the reputable dealer and, even if there was, it was the same price as the other colours. So we didn’t think the insurer needed to increase its offer.