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Whose responsibility is it to replace a lost insurance cheque?

Tayloff
by Tayloff 13 July 2009  |  Comments 4 comments  |  Love Love  0 loves

A friend of mine recently received a £700 insurance cheque for a stolen bicycle. She banks with Citibank and had to send them the cheque to pay it in to her account. The cheque never got there.

Now, the insurance company say that they will not stop the cheque they have already sent out as it is not their policy and it would incure them a charge from their bank. They have distanced themselves from the whole issue.

What rights does my friend have - surely she can't just give up her insurance money because of a post office mistake?

Thanks for any help you can give me.

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Comments (4)

  • Sall
    Love rating 2
    Sall posted

    Ask your friend to speak to a manager at the insurance company. Maybe the staff are just fobbing him off. I would have thought the insurance company to be more helpful.

     

    Posted on 13 July 2009 | Love Love  0 loves Report
  • Tayloff
    Love rating 0
    Tayloff posted

    Thanks for your answer. It seems crazy to me that the company won't deal with it!

    Posted on 13 July 2009 | Love Love  0 loves Report
  • MikeGG1
    Love rating 824
    MikeGG1 posted

    As she has to re-post the cheques in order to get them banked, these dats it is better to get companies to make payment direct to the bank account, which would avoid problems like this.

    Now that it has happened, she should contact a manager at the insurance company to get the cheque stopped and re-issued. If there is a charge for the stop, which there could well be, she should contact the Post Office who caused the problem in the first place, with a view to them paying for the cost of the 'Stop'.

    I believe that they could well pay out up to 100 times the cost of the stamp.

    Mike

    Posted on 13 July 2009 | Love Love  0 loves Report
  • SmudgeButt
    Love rating 83
    SmudgeButt posted

    Any company that has uncashed cheques beyond a month or two has a lot of work to do to reconcile their accounts even with an automated system. This is going to cost them more time and money than stopping and re-issuing a cheque. You could try pointing that out to them.

    Posted on 15 July 2009 | Love Love  0 loves Report

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