Insurance payout, for foreign currency expenditure
Discussion
Submitted a claim through a travel insurance company, for expenditure made in cash circa two weeks ago.
The insurance company have confirmed that they will pay.
However, the amount that they confirmed that they will pay is about £50 less, than the current conversion rates of today, when i received confirmation.
No payment was made on a card and i no longer have the receipt for the exchange of cash made, so no proof of exchange rate.
Given that I've not received payment yet, only confirmation that they are willing to pay.
Which rate tends to be taken into consideration.
The one now, when payment is made or the one (£50 less), when the claim was submitted?
The insurance company have confirmed that they will pay.
However, the amount that they confirmed that they will pay is about £50 less, than the current conversion rates of today, when i received confirmation.
No payment was made on a card and i no longer have the receipt for the exchange of cash made, so no proof of exchange rate.
Given that I've not received payment yet, only confirmation that they are willing to pay.
Which rate tends to be taken into consideration.
The one now, when payment is made or the one (£50 less), when the claim was submitted?
I get that if $1000 was spent and they repay $1000, that's straight forward. But the insurance company will be paying back in GBP.
So which conversion rate is taking into consideration, when the claim was made, or when they are making the payment?
Can't see anything in the T&Cs
GBP was converted into foreign currency before going abroad, and it was the cash that was used for payments.
Only have receipts in foreign currency.
So which conversion rate is taking into consideration, when the claim was made, or when they are making the payment?
Can't see anything in the T&Cs
GBP was converted into foreign currency before going abroad, and it was the cash that was used for payments.
Only have receipts in foreign currency.
Condi said:
essayer said:
If you paid $1000 two weeks ago you should be paid $1000. IMO. What does it say in the t&c’s?
This... You're being reimbursed for, and in, whatever currency you paid in abroad. The should pay you the UK equivalent of whatever the foreign currency was worth on the day you incurred the expense.
But ultimately, whatever it says in the contract.
TwigtheWonderkid said:
Why the hell would they pay in in dollars now you're back in the UK. And what if the dollars are worth less now than when you spent them.
The should pay you the UK equivalent of whatever the foreign currency was worth on the day you incurred the expense.
But ultimately, whatever it says in the contract.
Because he's spent, say, $1000 dollars on a product in the states and the company has now gone bust. He wants to claim on his holiday insurance, so he is claiming for $1000 worth of products. It is neither the insurance companies fault, nor their problem, that the FX rate has moved against him between then and now; he is still claiming for $1000 worth of products. The should pay you the UK equivalent of whatever the foreign currency was worth on the day you incurred the expense.
But ultimately, whatever it says in the contract.
As you say, it will have all the T+Cs in the contract.
Condi said:
TwigtheWonderkid said:
Why the hell would they pay in in dollars now you're back in the UK. And what if the dollars are worth less now than when you spent them.
The should pay you the UK equivalent of whatever the foreign currency was worth on the day you incurred the expense.
But ultimately, whatever it says in the contract.
Because he's spent, say, $1000 dollars on a product in the states and the company has now gone bust. He wants to claim on his holiday insurance, so he is claiming for $1000 worth of products. It is neither the insurance companies fault, nor their problem, that the FX rate has moved against him between then and now; he is still claiming for $1000 worth of products. The should pay you the UK equivalent of whatever the foreign currency was worth on the day you incurred the expense.
But ultimately, whatever it says in the contract.
As you say, it will have all the T+Cs in the contract.
TwigtheWonderkid said:
That's not what's happened, this is a travel insurance policy. He's has to spend money, maybe for emergency medical costs, or emergency clothing if his baggage went astray, or meals/accommodation if his flight back was delayed. So he changes up £100 to get $130 and buys what he needs. He's £100 out of pocket. Not £90 or £110 because the rate has changed.
If you say so. I can see it from both sides, if you have a specific transaction, with a specified FX rate on your statement then I can see the argument that he could be repaid in £s. However if he's paid for something in cash, then I fail to see how the insurance company can do anything other than use the spot rate to exchange the value in Dollars back to Pounds. Gassing Station | Finance | Top of Page | What's New | My Stuff