A BRITISH couple have won an insurance dispute after their provider refused to pay compensation for stolen gold and silver, arguing that the items counted as fine art rather than personal belongings.
According to The Times, the couple, identified only as Mr and Mrs L, were victims of a burglary in which a gold bar and a block of silver were taken from their home, along with other possessions.
When they made a claim, their insurer, Fairmead Insurance, paid for some losses but rejected the claim for the precious metals. The company said the items fell under the policy’s category of fine art and collectables and were therefore not covered.
Mr and Mrs L challenged this view and took the case to the Financial Ombudsman Service, arguing that the gold and silver should be treated as personal possessions under their home insurance policy.
The ombudsman ruled in their favour. In his decision, ombudsman Mike Waldron said that although Fairmead’s policy definition of art and antiques mentioned gold and silver, this only applied if the items were antiques or had artistic value.
“I haven’t seen any evidence that shows the gold bar and silver block are antiques or have artistic merit,” Waldron said, adding that they could not reasonably be classed as fine art.
He ordered Fairmead to settle the original claim, pay 8 per cent interest, and provide an extra £100 to compensate the couple for the inconvenience caused.
“We take customer service extremely seriously and feedback from policyholders indicates they are happy with the service. However, we acknowledge there is always room for improvement and that is why we are continually looking at ways to make our service even better," a spokesperson for Fairmead Insurance was quoted as saying.
