United kingdom Daily news: ASK TONY: I don't want a voucher for my stolen jewellery

ASK TONY: I don't want a voucher for my stolen jewellery

By Tony Hazell

PUBLISHED: 19:05 EST, 1 May 2012 | UPDATED: 19:05 EST, 1 May 2012

My home was burgled in August 2009. Among the items stolen were my late motherâ€™s wedding ring and other pieces of jewellery Iâ€™d inherited from her and my grandmother. Some were from previous generations, so were of great sentimental value.

I made a claim on my household insurance with Key Connect, part of Axa. A loss management company contacted me to say Iâ€™d been awarded Â£9,261 by my insurer and they were enclosing a Gemcheck Card for me to use at a network of jewellers. I said this was not suitable, but was only offered around half that value in cash.

Over the past two years, I have been forced to use this card. I still have Â£4,855 on it, so asked for its current value in cash. A cheque for Â£3,835 arrived, so I returned this and asked for the Gemcheck to be reinstated. Can you help? J. J., Hornchurch.

Value: If the item is antique or specially commissioned, then the insurer cannot insist on you buying a modern substitute from a High Street retailer

Lost jewellery is always a thorny issue. Insurers use their buying power to obtain discounts at jewellers and donâ€™t want to pay cash to customers. Hence, Axa is willing to pay more if you use this â€˜credit cardâ€™ than if you take the cash.

But the Financial Ombudsman Service, which can act as arbiter in disputes such as this, is well aware that jewellery has sentimental, as well as financial, value.

So, where a reasonable replacement can be obtained from a High Street retailer â€" and you live within easy travelling distance of the shop â€" then the insurer can provide vouchers rather than cash. And if you prefer to have cash, the insurer is allowed to make a deduction to account for the discount they could have received from the jeweller.

However, if the item is antique or specially commissioned, then the insurer cannot insist on you buying a modern substitute from a High Street retailer. In this case, you are entitled to the full value in cash. Axa wonâ€™t budge on this one. But if there were any antique or specially commissioned jewels among your collection, you could take your case to the Ombudsman.

But be quick. You have three years from when you first had reason to think something was amiss in which to take a complaint to the Ombudsman. If Axa has already formally rejected your complaint, you have six months from that date to complain. But in any formal rejection, Axa would have to tell you of your right to go to the Ombudsman and I do not believe this has yet happened. Call 0300 123 9123.

My wife and I own Standard Life shares which pay a cash dividend into a so-called scrip account. Standard Life has recommended that we move our shares into its drips (dividend reinvestment) scheme. We would no longer receive the dividend in cash, instead it would be reinvested into buying more shares. We have to make a decision by May 9. W. D., Doncaster.

Last year, Standard Life paid a total dividend of 13.8p per update share. The current share price is 227p. According to analyst Morningstar, the yield (or income) is a mouth-watering 5.88â€‰per cent.

Financial planning expert Danny Cox, of Hargreaves Lansdown, says it really depends on whether you want the income or would prefer to build your investment for the future. Only you know the answer to this question. If you want the income, do nothing, and they will send you the dividend. If not, and you want more Standard Life shares, then join the drips scheme.

Stockbrokers have highlighted the pros and cons of Standard Life shares and the consensus is that it is a â€˜holdâ€™. This is their coded way of saying they wouldnâ€™t buy any more shares, but if you sell them you might regret it.

On the positive side, the company had a pre-tax operating profit of Â£544million last year, well ahead of the market expectations of Â£476million. Its revenues from the business rose by 8â€‰per cent. Management delivered Â£79million of efficiency savings by the end of last year. And, from your point of view, the total dividend over the year increased by 6.2â€‰per cent.

Against this it is facing intense competition in the pensions and savings markets and it does have some small exposure (Â£50million) to debt issued by government and banks in Greece, Ireland, Italy, Portugal and Spain.

The management has said: â€˜The uncertain economic backdrop and its effect on consumer confidence has impacted new business volumes since the start of the year against a strong start to last year.â€™

Thatâ€™s it in a nutshell â€" now itâ€™s down to you. One other point to bear in mind is that reinvesting dividends to buy more shares can be a powerful way to build up your holding.

If, for instance, you now hold 100 shares, then you would get a further five shares, based on the current yield and share price. Then, next year, your dividend income should be even bigger allowing you to buy even more shares. This would give you more income when you do need it. However, this does depend on Standard Life maintaining its dividend levels.

STRAIGHT TO THE POINT

With my state pension increase, I received a letter from the Government saying I must inform them if I go into or come out of hospital. Why? J. K., Mere, Warminster.

Going into hospital does not affect the amount of state pension you receive. Letting the Pension Service know helps ensure your payments are not interrupted. For example, if you need help getting the cash due to immobility or have an adult dependant, Pension Service staff can arrange for someone else to collect your money.

I have found two policies with United Kingdom Provident taken out in 1975 in a safe deposit box with our bank. How do we get in touch with the company? J. P., Henfield, W. Sussex.

It is now part of Friends Life. Write to them at PO Box 1550, Salisbury, Wiltshire, SP1 2TW. I took out a loan with AA Finance for Â£7,000 in August 2008 together with a payment protection insurance (PPI) policy at a cost of Â£2,362.

In August 2011, I underwent radical breast cancer surgery. AA did not pay out and I think I have been mis-sold. S. H., Yorkshire.

Your refund of PPI premiums is on its way and the AA is also giving you Â£250 to apologise for the distress caused. Your loan and PPI was provided by Bank of Scotland, but the AA now uses the Co-Operative Bank.

I stopped paying into my company pension scheme in 2009 as I couldnâ€™t afford it. I contacted Legal General, who run the scheme, to retrieve my contributions, but they say I canâ€™t take out my money. Is this right? M. H., Wigan.

You are too late. You can claim back contributions made to a workplace pension within two years of quitting or getting the sack â€" but not after. Your cash is now locked up until you retire.