No cash alternative

By THIS IS MONEY
Updated:

 

Can my insurer supply alternative goods instead of cash and am I compelled to accept its decision to do so? GV, Bourne End, Bucks.

Leonie Edwards, at the Association of British Insurers, says: The policy document will set out the basis on which the claim is paid, either by replacing the item, repairing it, or with a cash sum.

The policy is in effect a contract, to which you are a party. So technically you are bound by its terms.

If you want to vary the terms you would have to challenge it under the Unfair Contract Terms Act. But in practice, if there is a problem, such as the insurer offering you an inferior product as a replacement, your best bet would be to negotiate with it.

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