0:00:02 > 0:00:06I've been battling your consumer rights for years, but some companies still aren't getting the message.
0:00:06 > 0:00:09The main aim and goal for big companies is profit.
0:00:09 > 0:00:10They don't care about the customers.
0:00:10 > 0:00:14Day in, day out, thousands of you are still being taken for a ride,
0:00:14 > 0:00:16and it's always the same old things -
0:00:16 > 0:00:20shoddy products, small print and bad customer service.
0:00:20 > 0:00:24They use words which an ordinary person wouldn't understand.
0:00:24 > 0:00:28Some firms are driving you barmy, causing you sleepless nights
0:00:28 > 0:00:31and making you feel like you're the one to blame.
0:00:31 > 0:00:32But don't despair,
0:00:32 > 0:00:37cos I'm here to take up the fight to make sure that you don't get done.
0:00:57 > 0:00:58Coming up on today's show...
0:00:58 > 0:01:00all that glitters is gold.
0:01:00 > 0:01:02Unless, of course, it gets stolen
0:01:02 > 0:01:05and your insurance company refuses to pay out.
0:01:05 > 0:01:10We were just gutted, this is how the insurers were treating us,
0:01:10 > 0:01:12you're left in the lurch, high and dry.
0:01:12 > 0:01:17How one woman's kitchen calamity turned her into a consumer champion.
0:01:17 > 0:01:19My blood was rising, and I thought,
0:01:19 > 0:01:21"I'm going to have to take them to court."
0:01:21 > 0:01:23And my team hits the streets
0:01:23 > 0:01:27to find out how consumer savvy you really are.
0:01:27 > 0:01:30I'm wrong! I thought I might be on that!
0:01:34 > 0:01:39Most of us have got insurance. "Why?" I hear you ask.
0:01:39 > 0:01:41Well, should our valuables
0:01:41 > 0:01:46be lost or stolen, you can make a claim on your policy.
0:01:46 > 0:01:50And you should get the cash - lovely -
0:01:50 > 0:01:52to buy replacements.
0:01:52 > 0:01:57But be warned, because not every insurance claim has a happy ending.
0:02:02 > 0:02:06And one Bradford-based couple know this only too well.
0:02:06 > 0:02:12Meet Sadiq Ali, a hardworking family man, and his wife, Mohima.
0:02:12 > 0:02:14When it comes to insurance, Sadiq is no slouch.
0:02:14 > 0:02:18He makes sure that he has building and contents cover
0:02:18 > 0:02:20to protect his family from loss or damage.
0:02:20 > 0:02:25At least you know then that if lightning strikes or whatever,
0:02:25 > 0:02:28that you won't be on the street, you won't be homeless,
0:02:28 > 0:02:30and your goods and things will be replaced.
0:02:30 > 0:02:32Like a lot of people,
0:02:32 > 0:02:35Sadiq completed his renewal questionnaire online.
0:02:35 > 0:02:40He chose a total of £30,000 worth of cover in August 2010
0:02:40 > 0:02:42with insurance company esure.
0:02:43 > 0:02:47So far, so good, but what about expensive individual items
0:02:47 > 0:02:53such as Sadiq's wife's jewellery? Would that need extra cover?
0:02:53 > 0:02:55I think there was a question there, something about,
0:02:55 > 0:02:59"Do you have any particular items, high risk,
0:02:59 > 0:03:01that are worth more than £1,500?"
0:03:01 > 0:03:06Certainly, for our jewellery, we didn't think anything was worth
0:03:06 > 0:03:09more than that, so we just put "no" for that question.
0:03:10 > 0:03:14As far as we're concerned, once we completed the process
0:03:14 > 0:03:17and it's done and it's paid for, that's it.
0:03:17 > 0:03:18I think, "That's it, I'm covered."
0:03:18 > 0:03:23But Sadiq's newly-bought peace of mind was about to be shattered,
0:03:23 > 0:03:24and the family thrown into turmoil,
0:03:24 > 0:03:29when they arrived home after an enjoyable Sunday out to find that
0:03:29 > 0:03:32thieves had broken into their home and turned it upside-down.
0:03:33 > 0:03:36They'd been through the bedrooms, all the drawers,
0:03:36 > 0:03:40under the mattresses, behind the picture frames.
0:03:40 > 0:03:43They'd literally ransacked the whole house, from top to bottom.
0:03:43 > 0:03:47It was a bitter blow, and obviously hit the family hard.
0:03:48 > 0:03:51You just felt sick to your gut, really, that somebody had
0:03:51 > 0:03:55invaded your home, gone through your personal belongings.
0:03:55 > 0:03:57The thieves had been heart-breakingly thorough,
0:03:57 > 0:03:59and had stolen everything of value.
0:04:00 > 0:04:04Including the boys' games consoles, family laptops and,
0:04:04 > 0:04:08most upsettingly of all, Sadiq's wife Mohima's precious collection
0:04:08 > 0:04:09of gold jewellery.
0:04:09 > 0:04:13The one thing that helped to keep up the family spirits was
0:04:13 > 0:04:15the thought that at least they were insured.
0:04:15 > 0:04:21We thought, obviously, "That's it, hopefully everything'll get replaced
0:04:21 > 0:04:25"and it'll compensate for the event that's happened."
0:04:25 > 0:04:28But despite assurances from their insurance company, esure,
0:04:28 > 0:04:32that their claim would be processed within ten days,
0:04:32 > 0:04:36the family was left hanging on for nearly five and a half months
0:04:36 > 0:04:39until finally the company came back with a bombshell.
0:04:42 > 0:04:45They turned round and said to us, "Sorry, we're voiding your insurance
0:04:45 > 0:04:48"from the inception date because you're underinsured."
0:04:50 > 0:04:51Crikey, that's harsh.
0:04:51 > 0:04:55esure had stated that the value of Mohima's gold jewellery was
0:04:55 > 0:04:58way above the amount Sadiq had quoted -
0:04:58 > 0:05:00therefore he was underinsured.
0:05:00 > 0:05:03But voiding his insurance policy meant that the company had
0:05:03 > 0:05:07washed their hands of any responsibility to settle his claim.
0:05:07 > 0:05:10This was a cruel knockback.
0:05:10 > 0:05:15We were just gutted, this is how the insurers were treating us,
0:05:15 > 0:05:18left in the lurch, high and dry.
0:05:18 > 0:05:21It sounds to me as though they've been done over by the burglars
0:05:21 > 0:05:22and now, potentially,
0:05:22 > 0:05:25they'd been done over by their insurance company.
0:05:25 > 0:05:28A double whammy, or what? Which is why...
0:05:28 > 0:05:31I've come to Bradford to meet Sadiq and Mohima.
0:05:31 > 0:05:33I can tell you what, it's beautiful, but it ain't half cold.
0:05:33 > 0:05:36They've been burgled, put a claim in with their insurance company.
0:05:36 > 0:05:39For one reason or another, they're not getting a payout.
0:05:39 > 0:05:42I'm here to find out why. They're in a bit of a pickle, really.
0:05:44 > 0:05:48- Right, Dom, this is my wife, Mohima. - Lovely to meet you.
0:05:48 > 0:05:52I've never been burgled, but the thing that must be
0:05:52 > 0:05:54one of the most upsetting elements of it is
0:05:54 > 0:05:57the violation of your personal space.
0:05:58 > 0:06:00How did you feel about that?
0:06:00 > 0:06:01Especially you,
0:06:01 > 0:06:04- being a mum and worrying about the kids and things.- Devastated.
0:06:04 > 0:06:08I think for a few days after we did get burgled,
0:06:08 > 0:06:10every time I'm in the kitchen,
0:06:10 > 0:06:15I were looking out the window, and if I saw someone going by,
0:06:15 > 0:06:18especially a young lad or something, I thought, "They've come back."
0:06:18 > 0:06:22The robbery clearly struck at the very heart of the family,
0:06:22 > 0:06:25and nowhere more so than the theft of Mohima's jewellery.
0:06:27 > 0:06:29How personal was all that stuff?
0:06:29 > 0:06:33Very, cos my husband bought it over the years.
0:06:33 > 0:06:36And at that time, you weren't working.
0:06:37 > 0:06:42The first job you got, so with your first wage. You had to save.
0:06:43 > 0:06:47It'd be nice, I think it'd give my wife the confidence again
0:06:47 > 0:06:49and happiness inside...
0:06:49 > 0:06:53- Yeah.- ..to be able to replace it, but obviously we can't afford to.
0:06:53 > 0:06:56And that's exactly where you'd expect your insurance company
0:06:56 > 0:06:57to come to your rescue.
0:06:57 > 0:07:00Sadiq bitterly remembers those first few days
0:07:00 > 0:07:02after originally putting in the claim.
0:07:03 > 0:07:08The impression they gave me was that it would be fairly simple,
0:07:08 > 0:07:11straightforward, that they would look at processing our claim
0:07:11 > 0:07:12and paying for our losses.
0:07:12 > 0:07:15However, in the weeks and months after their claim,
0:07:15 > 0:07:20esure informed the family that they were voiding their policy,
0:07:20 > 0:07:21and it all came down to the fact that
0:07:21 > 0:07:23Mohima's gold had soared in price,
0:07:23 > 0:07:27way more than Sadiq had ever thought possible.
0:07:27 > 0:07:30esure told them they had been grossly underinsured.
0:07:30 > 0:07:33What esure turned around and said was that,
0:07:33 > 0:07:36because the jewellery was worth about £13,000,
0:07:36 > 0:07:40instead of what we thought it was, about 4,000,
0:07:40 > 0:07:45that meant that they only allowed 10,000 for your high-risk items,
0:07:45 > 0:07:48and jewellery's classed as high-risk.
0:07:48 > 0:07:52So they said, because jewellery's 13,000,
0:07:52 > 0:07:55it goes over the one third that they allow,
0:07:55 > 0:07:58so they said they wouldn't have covered us,
0:07:58 > 0:08:02had they known the true value of our high-risk items.
0:08:02 > 0:08:04Right, now, you just said there that
0:08:04 > 0:08:08you thought your gold jewellery was worth about four grand-ish,
0:08:08 > 0:08:12but they said it's now worth 13,000. There's a huge difference there.
0:08:12 > 0:08:16You presumably were originally only expecting four grand back, were you?
0:08:16 > 0:08:17Yeah.
0:08:17 > 0:08:19What have they done, then?
0:08:19 > 0:08:23By the sounds of it, they've valued your gold probably by its weight
0:08:23 > 0:08:25and at today's market value.
0:08:25 > 0:08:29And there lies the problem. The very nugget of the issue.
0:08:31 > 0:08:32Sadiq bought the last of
0:08:32 > 0:08:35his wife's jewellery five years ago. At that time,
0:08:35 > 0:08:38he thought all her jewellery was worth just over £2,000.
0:08:38 > 0:08:42The price of gold has rocketed since then,
0:08:42 > 0:08:45making the jewellery now worth a whopping £13,500.
0:08:47 > 0:08:52Did you not think about renewing or having it valued and getting it
0:08:52 > 0:08:55up to date so that people... you knew what it would cost to replace it.
0:08:55 > 0:08:58We didn't think it'd jump that much.
0:08:58 > 0:09:01We doubled it, and that's what we thought it was worth.
0:09:02 > 0:09:06We did, we thought, "Yeah, it's worth probably double what we paid for it."
0:09:06 > 0:09:08- That's purely just you guessing, isn't it?- Yeah.
0:09:08 > 0:09:10Sadly.
0:09:10 > 0:09:13So, the insurance company have got, technically,
0:09:13 > 0:09:17a bit of an argument there, haven't they? You were underinsured.
0:09:17 > 0:09:19Now, one of the things which insurance companies have to do,
0:09:19 > 0:09:21they have to look at whether somebody -
0:09:21 > 0:09:22namely you, their client -
0:09:22 > 0:09:25has been negligent or dishonest, or, basically,
0:09:25 > 0:09:30you just made a small mistake and you weren't aware of it.
0:09:30 > 0:09:32They've obviously assumed for some reason that you haven't made
0:09:32 > 0:09:36a small mistake and they're going to allow you to get away with it -
0:09:36 > 0:09:39they've looked at this and thought, "No, you haven't done it right -
0:09:39 > 0:09:41"your problem, we wouldn't have insured you."
0:09:41 > 0:09:46They did say in the letter that they accepted that we weren't deliberate
0:09:46 > 0:09:50in how we misrepresented the value of the jewellery.
0:09:50 > 0:09:53They accepted that, but they said,
0:09:53 > 0:09:58regardless of that, it was negligent of us not to know the value.
0:09:58 > 0:10:03As far as you can remember, have esure ever said to you,
0:10:03 > 0:10:07"You might be underinsured because the value of gold has gone up -
0:10:07 > 0:10:11"get any jewellery, any valuable items reinsured, revalued"?
0:10:11 > 0:10:13No, nothing like that.
0:10:14 > 0:10:17Sadiq clearly did everything he thought
0:10:17 > 0:10:19he should to be able to claim on his insurance,
0:10:19 > 0:10:22and although I never would have expected a big insurance company
0:10:22 > 0:10:26to have a heart of gold, I would certainly expect them to play fair.
0:10:26 > 0:10:29Not only were esure refusing to pay out on their gold,
0:10:29 > 0:10:32computers and their sons' game consoles,
0:10:32 > 0:10:37their decision to void the policy has had even worse ramifications.
0:10:37 > 0:10:40- All of a sudden, you've got nothing now.- Nothing.
0:10:40 > 0:10:42What other knock-on effects has that had?
0:10:42 > 0:10:45Well, the fact that they voided us means that we have to tell
0:10:45 > 0:10:49other insurers, and I've been out to try and get other insurance
0:10:49 > 0:10:52for the building and the contents and people say no.
0:10:52 > 0:10:53The insurers will quote you,
0:10:53 > 0:10:56but when you tell them that you've been voided,
0:10:56 > 0:10:59the underwriting department refuse to provide cover.
0:10:59 > 0:11:02- Ouch. Not looking good, is it?- No.
0:11:02 > 0:11:03You can say that again.
0:11:03 > 0:11:06esure has not only left Sadiq and his family uninsured,
0:11:06 > 0:11:09but what's worse, uninsurable.
0:11:11 > 0:11:14While I get on their case to see if esure could have done better
0:11:14 > 0:11:16and get them to look again at his claim,
0:11:16 > 0:11:18I've asked Sadiq to do some research.
0:11:19 > 0:11:21The ballooning price of gold is
0:11:21 > 0:11:24clearly one of the areas to investigate, so I've asked him
0:11:24 > 0:11:26to find out the price of gold per gram today,
0:11:26 > 0:11:29the price when the policy was taken out
0:11:29 > 0:11:32and also the price when Sadiq bought the jewellery,
0:11:32 > 0:11:36so that I can get a grip on what's been going on.
0:11:38 > 0:11:42By calling me in, what were you hoping to achieve by this?
0:11:42 > 0:11:45We were hoping that you could fight our cause
0:11:45 > 0:11:49and get the insurers to at least reinstate our insurance.
0:11:49 > 0:11:51I can't make any promises. You know that.
0:11:51 > 0:11:53I don't know if there's any areas there
0:11:53 > 0:11:54which I can find out and dig out
0:11:54 > 0:11:55and try and improve on.
0:11:55 > 0:11:57The insurance company might be 100% right,
0:11:57 > 0:12:00- but I'll certainly have a good try for you.- Mmm-hmm.
0:12:04 > 0:12:07People have this impression that insurance companies do
0:12:07 > 0:12:09everything within their power to avoid paying out.
0:12:09 > 0:12:12I don't believe that. I think as long as you've done your job,
0:12:12 > 0:12:14insurance companies will pay out.
0:12:14 > 0:12:17In this case, though, Sadiq and Mohima have got a bit of a problem.
0:12:17 > 0:12:19There's things in there which aren't quite right,
0:12:19 > 0:12:22and as a result of that, they're not getting paid out,
0:12:22 > 0:12:24and they've lost a lot of valuable equipment.
0:12:24 > 0:12:26It's a bit of a mess, but I'm going to do everything I can
0:12:26 > 0:12:28to see if I can to get that ruling overturned.
0:12:28 > 0:12:32Now, before I get stuck into this case,
0:12:32 > 0:12:34it always pays to find out just what I'm dealing with.
0:12:34 > 0:12:36esure was founded in 2000
0:12:36 > 0:12:40as an internet and telephone-based insurance company
0:12:40 > 0:12:44with just 50 staff, and within less than five years became
0:12:44 > 0:12:46one of the fastest-growing insurers in the UK.
0:12:46 > 0:12:50Well known for their high-profile marketing campaign,
0:12:50 > 0:12:54spawning the phrase, "Calm down, dear, it's only a commercial,"
0:12:54 > 0:12:59esure's stated goal is to offer superior service.
0:12:59 > 0:13:01I think it's high time I put that to the test.
0:13:03 > 0:13:06Right, Sadiq's claim may have been stopped - let's see
0:13:06 > 0:13:07if we can start it again.
0:13:10 > 0:13:13'So, superior customer service, eh? Let's find out.
0:13:15 > 0:13:17'I get put through to esure's claims department.'
0:13:17 > 0:13:20My name's Dominic Littlewood, I'm calling from the BBC.
0:13:20 > 0:13:23It's about a policy claim that's going through with esure
0:13:23 > 0:13:25at the moment, and I just wondered
0:13:25 > 0:13:27if I could speak to somebody about that.
0:13:27 > 0:13:30'After handing over Sadiq's policy details and explaining that
0:13:30 > 0:13:33'I'm now on the case and have Sadiq's permission
0:13:33 > 0:13:36'to handle it exclusively,
0:13:36 > 0:13:39'they say they'll have to get someone to call me back.' Bye-bye.
0:13:40 > 0:13:42Not a particularly helpful first call,
0:13:42 > 0:13:45but sometimes you mention your name and people go, "Ooh, scared."
0:13:45 > 0:13:48Anyhow, I've got some details there,
0:13:48 > 0:13:51but I've got to start faxing over details to them.
0:13:51 > 0:13:53Not a great start, but at least it's under way.
0:13:53 > 0:13:58But will this case come crashing down even before I can build it up
0:13:58 > 0:14:00when esure drop a bombshell?
0:14:00 > 0:14:03'There is absolutely no two ways about it,
0:14:03 > 0:14:07'he did not tell us the truth about what was in his house.'
0:14:13 > 0:14:15Now, consumer law can be very confusing.
0:14:15 > 0:14:17You've got your Sales of Goods Act, distance selling,
0:14:17 > 0:14:23right to return - I could go on, but knowing just a few of these laws can
0:14:23 > 0:14:25save you not only money but a lot of hassle as well.
0:14:25 > 0:14:28My research team have been out on the streets,
0:14:28 > 0:14:31armed with questions to put to you, the buying public, to find out
0:14:31 > 0:14:35if you know your consumer rights from your consumer wrongs.
0:14:40 > 0:14:43Today, we've hit the shopping centres
0:14:43 > 0:14:45in our quest for spreading knowledge.
0:14:45 > 0:14:46The first question for you lot...
0:14:48 > 0:14:52"While in the shop, another customer carelessly knocks a heavy item
0:14:52 > 0:14:54"onto your feet, hurting you quite badly.
0:14:54 > 0:14:56"Who's responsible for the accident?"
0:14:57 > 0:14:58The other customer.
0:14:59 > 0:15:01If the store's not at fault at all,
0:15:01 > 0:15:03then the customer would be responsible.
0:15:03 > 0:15:04I'd say the customer.
0:15:04 > 0:15:06I think I'm wrong now. I think the store are liable,
0:15:06 > 0:15:09cos I think they're always liable, that's why they have insurance.
0:15:09 > 0:15:12Correct. But only one out of three, though.
0:15:12 > 0:15:14Yeah, the store are always liable.
0:15:14 > 0:15:16The shop has a duty of care
0:15:16 > 0:15:19to ensure the safety of everyone on the premises.
0:15:19 > 0:15:22Supervisors and managers have an obligation to deal with
0:15:22 > 0:15:24inappropriate behaviour by its customers.
0:15:25 > 0:15:29The shop is liable if the trip, slip or fall could have been prevented.
0:15:30 > 0:15:35Staying in the stores, next up, the wrong size.
0:15:35 > 0:15:38"You return a jumper to a clothes store and it's the wrong size.
0:15:38 > 0:15:42"The shop assistant tries to give you vouchers but you prefer cash.
0:15:42 > 0:15:43"Can you insist on a cash refund?"
0:15:44 > 0:15:48I imagine, again, it depends on the small print on the receipt.
0:15:48 > 0:15:50It's a difficult one.
0:15:50 > 0:15:54If you paid cash for it, yes, they should pay cash back.
0:15:54 > 0:15:56I said if you've got the receipt...
0:15:56 > 0:15:58If you've got the receipt, yes, you can.
0:15:58 > 0:16:01- Oops. Three out of three wrong. - Really?
0:16:01 > 0:16:03Really indeed.
0:16:03 > 0:16:06The retailer is well within their rights to give you vouchers
0:16:06 > 0:16:09to spend in store because the onus is on you
0:16:09 > 0:16:12to make sure that the item fits before leaving the premises.
0:16:12 > 0:16:14The shop may refund in cash,
0:16:14 > 0:16:17but this would be a goodwill gesture on their part.
0:16:18 > 0:16:20- So, try it on before you leave?- Yeah.
0:16:20 > 0:16:22Good thinking!
0:16:22 > 0:16:24Too right, sir. And finally, the dodgy dongle.
0:16:25 > 0:16:28"You have wireless internet coverage on your laptop through a dongle.
0:16:28 > 0:16:30"When you move house, you can't get internet coverage
0:16:30 > 0:16:33"in the new location. You cancel with the provider
0:16:33 > 0:16:37"but they bill you for breaking the contract and they charge you."
0:16:37 > 0:16:40No, cos it's their fault if you don't get service in their area.
0:16:40 > 0:16:43I'm not too sure. I think they could charge you
0:16:43 > 0:16:46if you're still under contract,
0:16:46 > 0:16:50because you can't break the contract until a certain date.
0:16:50 > 0:16:54If you tell them that you're going to move, then they should make sure
0:16:54 > 0:16:57that you can still receive it from where you are,
0:16:57 > 0:16:58where you've moved to.
0:17:00 > 0:17:05- If not, then they shouldn't be able to bill you.- Two out of three wrong.
0:17:05 > 0:17:09I'm wrong? I thought I might be on that!
0:17:09 > 0:17:12I'd have tried to wiggle out of it, anyway!
0:17:13 > 0:17:16If you sign a contract, you're obliged to pay for the duration
0:17:16 > 0:17:20of this contract, even if you move out of the service area.
0:17:20 > 0:17:23If you're ending a contract early, you may have to pay the sum
0:17:23 > 0:17:28totalling the remaining payments to the end of the contract.
0:17:28 > 0:17:31Some companies may offer an alternative or cancel the contract,
0:17:31 > 0:17:33but only as a goodwill gesture.
0:17:34 > 0:17:39Well, you lot, I think you all need to brush up on your consumer rights.
0:17:39 > 0:17:42Trust me, knowing them will stop you getting done.
0:17:48 > 0:17:50I'm looking into the case of Sadiq Ali,
0:17:50 > 0:17:54whose family home was ransacked by burglars in April 2011.
0:17:56 > 0:17:59Sadiq took comfort in the fact that his insurance would cover the loss.
0:18:01 > 0:18:04But esure took one look at Sadiq's claim and branded it void,
0:18:04 > 0:18:06saying that his wife's jewellery wasn't covered
0:18:06 > 0:18:10because the price of gold had risen so much.
0:18:10 > 0:18:13And even worse, having their policy voided also meant that
0:18:13 > 0:18:15their reputation was tarnished
0:18:15 > 0:18:18and other insurance companies wouldn't touch them.
0:18:18 > 0:18:22We might not have bothered paying the premium to the insurance company.
0:18:24 > 0:18:27"Calm down" might have been the motto for this insurance company,
0:18:27 > 0:18:31but they've left Sadiq and his family anything but calm with their heavy-handed approach.
0:18:31 > 0:18:35Sadiq has appealed esure's decision
0:18:35 > 0:18:37to the Financial Ombudsman Service,
0:18:37 > 0:18:39and while he waits for their findings,
0:18:39 > 0:18:41I'm determined to keep on the case.
0:18:43 > 0:18:45For me, this case revolves around one thing -
0:18:45 > 0:18:47the changing price of gold.
0:18:50 > 0:18:52When Sadiq took out his insurance policy,
0:18:52 > 0:18:57he covered himself for £30,000 worth of contents cover.
0:18:57 > 0:19:01Now, that consisted of £20,000 for low-risk items,
0:19:01 > 0:19:04represented by these two balloons...
0:19:06 > 0:19:08..and £10,000 for high-risk items,
0:19:08 > 0:19:12represented by this gold balloon.
0:19:14 > 0:19:18However, after the burglary, Sadiq realised to his cost
0:19:18 > 0:19:22that the price of gold had shot up considerably.
0:19:25 > 0:19:29Which meant Sadiq was actually underinsured.
0:19:29 > 0:19:33Now, the insurance company then voided his claim and cancelled
0:19:33 > 0:19:37his insurance policy, which meant he had no insurance at all.
0:19:39 > 0:19:42That is a pretty harsh price to pay for a simple mistake.
0:19:49 > 0:19:52When you insure your possessions, most of us know that
0:19:52 > 0:19:55they're going to go up or down in value, but in the event of a claim,
0:19:55 > 0:19:59quite often insurance companies will give you the replacement cost.
0:19:59 > 0:20:02So, I've asked Sadiq to speak to some experts to find out
0:20:02 > 0:20:05just how much gold has gone up over the past few years.
0:20:07 > 0:20:08This is interesting.
0:20:08 > 0:20:12I've found a website here that shows the price of gold
0:20:12 > 0:20:14for the past decade.
0:20:14 > 0:20:17You look back here, it's showing about 2002,
0:20:17 > 0:20:20the price of gold was about £7, £8 a gram.
0:20:22 > 0:20:27And in 2008, roughly to the second bit of gold that we bought,
0:20:27 > 0:20:31it's showing about £10 a gram.
0:20:31 > 0:20:35So far, so good, but what about now?
0:20:35 > 0:20:37Time to find out from a local jeweller
0:20:37 > 0:20:39just what the cost would be today.
0:20:39 > 0:20:44£35.62, plus VAT.
0:20:44 > 0:20:47Crikey, that's quadrupled in just four years.
0:20:47 > 0:20:49So, no wonder the jewellery that Sadiq insured
0:20:49 > 0:20:51for four and a half grand is,
0:20:51 > 0:20:54according to esure, now worth over 15 grand.
0:20:54 > 0:20:55Who'd have thought it?
0:20:55 > 0:21:00Certainly not Sadiq, not me, and probably not half the country.
0:21:00 > 0:21:03Surely you need to be a gold expert to stay on top of
0:21:03 > 0:21:06that kind of pricing roller coaster.
0:21:06 > 0:21:10Unless people have been studying the bullion market for whatever reason,
0:21:10 > 0:21:14I think it's unlikely that the general public will appreciate
0:21:14 > 0:21:17exactly how much gold has gone up in the last ten years.
0:21:17 > 0:21:20And so therefore, they won't have realised
0:21:20 > 0:21:22how much their jewellery has increased in value.
0:21:22 > 0:21:25If you have a treasured piece of jewellery
0:21:25 > 0:21:27that you bought in, say, 1980,
0:21:27 > 0:21:30and you are relying on the original purchase receipt,
0:21:30 > 0:21:35you cannot expect an insurer to pay out in a post-loss situation
0:21:35 > 0:21:38on just the information on that receipt.
0:21:38 > 0:21:41You really do need to have an up-to-date valuation.
0:21:41 > 0:21:44There's always been a problem with people not having
0:21:44 > 0:21:47their jewellery insured properly and valued properly,
0:21:47 > 0:21:51but because of the rocketing bullion prices over the last ten years,
0:21:51 > 0:21:55we've seen an extraordinary number of cases
0:21:55 > 0:21:57of people being so grossly underinsured.
0:21:57 > 0:22:01I would say that it's probably not an exaggeration to state that
0:22:01 > 0:22:06I see it leaves two people a day in my working life who are undervalued.
0:22:06 > 0:22:10Sadiq made a big mistake when he took his insurance out.
0:22:10 > 0:22:13He didn't realise how much the price of gold had gone up
0:22:13 > 0:22:15in the last ten years, and I've got a funny feeling
0:22:15 > 0:22:18it's a very common mistake. Let's find out.
0:22:19 > 0:22:21Let me give you that lump of gold there.
0:22:21 > 0:22:24Now, ten years ago, if you bought that, it'd cost you £1,000
0:22:24 > 0:22:26- and you insured it for £1,000.- Right.
0:22:26 > 0:22:28- Right? Lucky girl, aren't you?- Yeah.
0:22:28 > 0:22:33- But yesterday, you got burgled, the gold was stolen.- Oh.
0:22:33 > 0:22:36How much would you expect your insurance company to pay you out?
0:22:36 > 0:22:39Probably the same amount, hopefully.
0:22:39 > 0:22:40- 1,000?- Yeah.
0:22:40 > 0:22:42You see, it's now worth five grand.
0:22:42 > 0:22:45- So...- I would like to think that I'd get that.
0:22:45 > 0:22:47- The £5,000?- Yeah.
0:22:47 > 0:22:48- £1,000.- Why?
0:22:48 > 0:22:52That's how much it's worth.
0:22:52 > 0:22:54- Ah...- Or do you think it should have gone up in price?
0:22:54 > 0:22:56- That's now worth five grand.- OK.
0:22:56 > 0:22:58So, how much should your insurance company pay out?
0:23:00 > 0:23:01Five grand!
0:23:01 > 0:23:03- Yeah?- Am I just stating the obvious here?
0:23:03 > 0:23:05'So you'd hope, but how would you feel if, like Sadiq,
0:23:05 > 0:23:09'you're considered grossly underinsured and get nothing?'
0:23:09 > 0:23:11I'd be angry, obviously.
0:23:11 > 0:23:14I didn't think that that could actually happen.
0:23:14 > 0:23:17It's just not possible. You rely on these people to do a good job,
0:23:17 > 0:23:19and they're not. No, that's scary.
0:23:19 > 0:23:22What if I told you the chances are they wouldn't give you a penny?
0:23:22 > 0:23:26- Really?- Really. You're classed as underinsured.
0:23:26 > 0:23:28They would possibly cancel your policy
0:23:28 > 0:23:31and you possibly couldn't get insurance again
0:23:31 > 0:23:33as a result of the claim being made void.
0:23:33 > 0:23:36- Gracious me!- It's a bit shocking, isn't it?
0:23:36 > 0:23:37That is shocking, yes.
0:23:37 > 0:23:40And on top of that, you're to blame.
0:23:40 > 0:23:42How are you going to feel about that?
0:23:42 > 0:23:45Whose responsibility is it to keep the value up to date?
0:23:45 > 0:23:46The insurance company's or yours?
0:23:46 > 0:23:48I don't know.
0:23:49 > 0:23:52- It's probably mine, innit? Is it?- It is yours.
0:23:52 > 0:23:54- To keep a tab on what's going on?- Yeah.
0:23:54 > 0:23:56But insurance companies are aware it's gone up.
0:23:56 > 0:23:58Should they be warning you of that?
0:23:59 > 0:24:01- They should do, shouldn't they?- Yeah.
0:24:01 > 0:24:04They should write to you, shouldn't they, and say you're underinsured?
0:24:04 > 0:24:07You see, there is proof of the pudding.
0:24:07 > 0:24:09A lot of people could find themselves
0:24:09 > 0:24:11in exactly the same situation as Sadiq -
0:24:11 > 0:24:14sitting on a goldmine but insured for a coalmine.
0:24:18 > 0:24:21Right, I've had a letter back from the insurance company
0:24:21 > 0:24:23about poor old Sadiq.
0:24:23 > 0:24:25And it's brought up a couple of questions for me,
0:24:25 > 0:24:27which I think would be quite interesting.
0:24:28 > 0:24:31'Now, although the Financial Ombudsman is
0:24:31 > 0:24:34'also investigating this, I'm going to get back on the hotline
0:24:34 > 0:24:38'to esure to see if I can get to the bottom of this case.
0:24:38 > 0:24:39'After my first call,
0:24:39 > 0:24:42'I now have a contact who sounds like a decision maker to me -
0:24:42 > 0:24:45'Adrian Webb, Head of Corporate Communication.'
0:24:46 > 0:24:50- Hello there, it's Adrian here. - Hi, Adrian, it's Dominic Littlewood.
0:24:50 > 0:24:52'Having spoken to members of the public
0:24:52 > 0:24:54'and with information from valuers,
0:24:54 > 0:24:57'clearly, undervaluing gold is a huge problem.
0:24:57 > 0:25:00'Surely esure is not going to blame Sadiq for what is a common mistake?'
0:25:03 > 0:25:07In your opinion, do you think that Sadiq has deliberately misled you?
0:25:08 > 0:25:10Whatever it is, he did mislead us.
0:25:10 > 0:25:13There is no two ways about it from what we've looked at
0:25:13 > 0:25:14and what we've seen.
0:25:14 > 0:25:17There is absolutely no two ways about it.
0:25:17 > 0:25:20He did not tell us the truth about what was in his house.
0:25:21 > 0:25:25'That's a shock. They actually think Sadiq lied to them.'
0:25:25 > 0:25:28I've got to be honest, I can feel this one slipping away from me.
0:25:28 > 0:25:31I'm not feeling very good about this one.
0:25:31 > 0:25:35Now, in spite of what Adrian says, we know esure wrote to Sadiq,
0:25:35 > 0:25:39saying that they did not think that he had withheld the true value
0:25:39 > 0:25:42of the jewellery maliciously, ie deliberately.
0:25:44 > 0:25:46And yet they still voided his policy.
0:25:46 > 0:25:49Are they allowed to do that?
0:25:49 > 0:25:51And if so, how many more people across the country are about to get
0:25:51 > 0:25:55a rude awakening when they discover their insurance policy isn't worth
0:25:55 > 0:25:56the paper it's written on?
0:25:57 > 0:26:02So, underinsurance is clearly a big issue, but just how big?
0:26:03 > 0:26:07David Cresswell is a director at the Financial Ombudsman Service,
0:26:07 > 0:26:11which is there to help consumers who have fallen out with their bank
0:26:11 > 0:26:13or insurance company.
0:26:13 > 0:26:17So he's just the man to tackle this thorny issue of underinsurance.
0:26:17 > 0:26:20Underinsurance is a common problem.
0:26:20 > 0:26:23Although at the Ombudsman we see a relatively small number of cases,
0:26:23 > 0:26:28it's accepted that it's probably the tip of the iceberg in the sense that
0:26:28 > 0:26:33possibly up to one in four people don't have enough insurance
0:26:33 > 0:26:37to cover the current-day value of their possessions.
0:26:37 > 0:26:41Underinsurance is all about people not recognising
0:26:41 > 0:26:45the true value of what they've got. And telling their insurer
0:26:45 > 0:26:48that things are worth less than they actually are.
0:26:48 > 0:26:53But if you have still paid your premiums, why is this so critical?
0:26:53 > 0:26:57Underinsurance is a really serious issue for insurance companies.
0:26:57 > 0:27:00It goes right to the very heart of what insurance is about.
0:27:00 > 0:27:03And insurance companies will tell you
0:27:03 > 0:27:06it's all about "utmost good faith".
0:27:06 > 0:27:09What that means is they will say they are going to be
0:27:09 > 0:27:11completely open and honest with you,
0:27:11 > 0:27:13and you, the customer,
0:27:13 > 0:27:16must be completely open and honest with them.
0:27:16 > 0:27:19So, if you say your valuables are worth £25,000,
0:27:19 > 0:27:23and in actual fact they're worth £50,000,
0:27:23 > 0:27:27the insurance company can quite literally say you've lied to them.
0:27:27 > 0:27:31So, if they think you're lying, what would be the consequences?
0:27:31 > 0:27:34In some cases of underinsurance,
0:27:34 > 0:27:38the insurer can exercise their legal right to void the policy.
0:27:38 > 0:27:42That's really serious. It's probably going to mean
0:27:42 > 0:27:44you're going to have great difficulty
0:27:44 > 0:27:47getting any other kind of insurance as well.
0:27:47 > 0:27:50But, usually that will only happen when the insurance company
0:27:50 > 0:27:53is pretty satisfied that you have actually tried,
0:27:53 > 0:27:55in some way, to defraud them.
0:27:56 > 0:28:01Right, what we have just heard from the Financial Ombudsman is dynamite.
0:28:01 > 0:28:03A company can't void your policy
0:28:03 > 0:28:07unless they think you have intentionally lied to them.
0:28:07 > 0:28:10And I have it right here in black and white that esure don't think
0:28:10 > 0:28:12that Sadiq deliberately misled them.
0:28:14 > 0:28:18So, we're firing off an e-mail to Adrian, stating those regulations
0:28:18 > 0:28:24prove to be the golden bullet to blow apart esure's arguments.
0:28:24 > 0:28:27Right, just had a message. esure have been back on the phone.
0:28:27 > 0:28:31They've only got an hour to speak to me. Probably another meeting.
0:28:31 > 0:28:32Let's find out what's going on.
0:28:36 > 0:28:39I get lots of mail, and I just love it
0:28:39 > 0:28:43when it's stories about you taking on the big boys and winning.
0:28:43 > 0:28:45Good on you.
0:28:45 > 0:28:47Here's a story of how you did it.
0:28:51 > 0:28:53The kitchen, the heart of the family home,
0:28:53 > 0:28:57and with 23 million of them in the UK,
0:28:57 > 0:29:00it's big business for the manufacturers and retailers.
0:29:00 > 0:29:04But what happens when your shiny new kitchen starts to fall apart
0:29:04 > 0:29:05after only a few years,
0:29:05 > 0:29:11and the company you bought it from has disappeared down the plughole?
0:29:11 > 0:29:14I couldn't have afforded to replace it myself. We're pensioners.
0:29:14 > 0:29:18Meet grandmother of four, Angela Rice.
0:29:18 > 0:29:22Back in 2007, she decided to replace her tired kitchen
0:29:22 > 0:29:27with a brand-spanking-new one at a cost of £5,212.
0:29:28 > 0:29:30We were very pleased with it.
0:29:30 > 0:29:35It was in shades of coffee and cream and it was really very nice.
0:29:35 > 0:29:36But, four years down the line,
0:29:36 > 0:29:40Angela noticed something a bit off-colour about her kitchen.
0:29:40 > 0:29:43We sat looking at it one day and I thought,
0:29:43 > 0:29:47"Are the colours of the kitchen changing?"
0:29:47 > 0:29:51And gradually, the change became more and more apparent
0:29:51 > 0:29:59and the coffee shades actually turned from coffee to almost a pale grey.
0:29:59 > 0:30:03I was very upset, because this was a dream kitchen
0:30:03 > 0:30:06that I'd longed for for quite some time.
0:30:06 > 0:30:09So it was really disappointing.
0:30:09 > 0:30:13And so began Angela's battle to get things put right.
0:30:13 > 0:30:18My immediate reaction was to dig out the invoice
0:30:18 > 0:30:21and contact the original supplier.
0:30:21 > 0:30:24To my horror, I found that he'd gone bankrupt,
0:30:24 > 0:30:26so there wasn't going to be any help there.
0:30:26 > 0:30:30Not one to fall at the first hurdle, Angela tried another tack.
0:30:30 > 0:30:34My next reaction was to approach the manufacturer.
0:30:34 > 0:30:39They did offer to sell me fresh units,
0:30:39 > 0:30:43at manufacturer's cost price.
0:30:43 > 0:30:47That still would have involved me in a lot more expense.
0:30:47 > 0:30:50A lot of you would have given up there and then,
0:30:50 > 0:30:54but not Angela, because she was a bit of a legal eagle.
0:30:54 > 0:30:5810-15 years ago, because I left school at 16
0:30:58 > 0:31:03and didn't have any A-levels, I decided to do an A-level in law.
0:31:03 > 0:31:07I felt, if my youngest son can cope with law,
0:31:07 > 0:31:11and he's not nearly as bright as his mum, I'm sure I can do it.
0:31:11 > 0:31:16So I actually did A-level law. And I got an A.
0:31:16 > 0:31:21And A-student Angela was about to become top of the class.
0:31:21 > 0:31:25When you have paid for a product with your credit card,
0:31:25 > 0:31:28that makes the credit card company
0:31:28 > 0:31:33jointly and severally responsible for defective goods,
0:31:33 > 0:31:37or goods that are not of satisfactory quality.
0:31:38 > 0:31:40She was bang-on.
0:31:40 > 0:31:43The Consumer Credit Act of 1974 provides protection
0:31:43 > 0:31:46to consumers via their credit card companies
0:31:46 > 0:31:50from faulty goods and businesses going under.
0:31:50 > 0:31:53So, she got straight on to Barclaycard, and told them
0:31:53 > 0:31:57they were now responsible for the cost of getting things fixed.
0:31:57 > 0:31:59After the initial phone call,
0:31:59 > 0:32:02we started sending photographs of the kitchen.
0:32:02 > 0:32:05We sent them numerous e-mails.
0:32:05 > 0:32:08Their response was always slow.
0:32:08 > 0:32:10I made telephone logs,
0:32:10 > 0:32:13where I had been hanging on for 40 minutes,
0:32:13 > 0:32:18listening to muzak, and this sort of thing.
0:32:18 > 0:32:23And it really is very frustrating, trying to communicate with them.
0:32:23 > 0:32:28Angela felt she needed concrete proof that her kitchen was indeed faulty,
0:32:28 > 0:32:30so, she did some digging.
0:32:30 > 0:32:33I found out that there were two organisations that could help me.
0:32:33 > 0:32:35The Kitchens And Bathrooms Association,
0:32:35 > 0:32:37or the Furniture Ombudsman.
0:32:37 > 0:32:43Both of which would charge in the region of £350 for a report.
0:32:43 > 0:32:48And I wrote to Barclaycard and said, would this be acceptable?
0:32:48 > 0:32:54And were they prepared to contribute towards the report?
0:32:54 > 0:32:58And they wrote back to me, offering me £50.
0:32:58 > 0:33:02I then contacted them again and said, "This is derisory."
0:33:02 > 0:33:06I went ahead with the report from the Furniture Ombudsman.
0:33:06 > 0:33:10The report came back, conclusively stating that the kitchen
0:33:10 > 0:33:16was of defective manufacture and I thought, at that stage,
0:33:16 > 0:33:19they are going to have to admit responsibility.
0:33:19 > 0:33:23Angela sent Barclaycard the report, together with two quotes
0:33:23 > 0:33:26for the kitchen repairs, and waited for their reply.
0:33:26 > 0:33:29They came back to me and told me they had lost the report
0:33:29 > 0:33:33and they had only copied two pages of it.
0:33:33 > 0:33:38I was livid. My blood was rising and I thought,
0:33:38 > 0:33:41I'm going to have to take them to court.
0:33:41 > 0:33:44The other thing that had happened was they had said, if they didn't
0:33:44 > 0:33:49hear from me within ten days, they were going to close the case.
0:33:49 > 0:33:53Hey, I'd been going at this for about four months!
0:33:53 > 0:33:59So, at that stage, I had to write back and say, "This is it.
0:33:59 > 0:34:02"Seven days or I'm going to take you to court."
0:34:02 > 0:34:05After a six-day wait, Barclaycard got back to her.
0:34:07 > 0:34:12They did respond with an offer of £3,318.
0:34:13 > 0:34:20And £250 for the Furniture Ombudsman's report
0:34:20 > 0:34:23and, they said, in full and final settlement.
0:34:23 > 0:34:26Angela's tenacity and legal savvy had paid off.
0:34:28 > 0:34:34I feel as if I have won a moral battle, and the outcome is good.
0:34:34 > 0:34:39My kitchen is lovely to look at, and yeah, it was worth doing.
0:34:39 > 0:34:42Barclaycard have issued a statement, saying:
0:34:51 > 0:34:54They go on to apologise and confirm that:
0:34:58 > 0:35:01What a great result for Angela.
0:35:01 > 0:35:03She showed Barclaycard that,
0:35:03 > 0:35:06if you can't stand the heat, get out the kitchen!
0:35:11 > 0:35:15Father of two Sadiq Ali is battling his insurance company, esure.
0:35:15 > 0:35:17They voided his policy
0:35:17 > 0:35:22and refused to pay out after a burglary at the family home.
0:35:22 > 0:35:26It wasn't just that we lost, suffered a burglary
0:35:26 > 0:35:29and all the heartache and anxiety that goes with that.
0:35:29 > 0:35:31Then, none of our things were replaced
0:35:31 > 0:35:34by the insurers that we depended on.
0:35:34 > 0:35:39Now, I've been digging deep to find a way to make esure back down.
0:35:39 > 0:35:41And, so far, this has been a really tough nut.
0:35:41 > 0:35:44But, I think I might have finally found a crack in this case.
0:35:46 > 0:35:49Thanks to the Financial Ombudsman's regulations,
0:35:49 > 0:35:52which state that a policy can be voided only when
0:35:52 > 0:35:54there is a deliberate attempt to lie to the insurance company,
0:35:54 > 0:35:58which, esure agree, was not true in Sadiq's case.
0:35:58 > 0:36:03While waiting for a ruling from the Financial Ombudsman's service
0:36:03 > 0:36:06on whether esure was justified in voiding Sadiq's claim,
0:36:06 > 0:36:09I fired off an e-mail to Adrian, head of corporate communications,
0:36:09 > 0:36:12pointing out FOS regulations,
0:36:12 > 0:36:14and it seems that I might have hit a nerve,
0:36:14 > 0:36:16because he came straight back to me.
0:36:17 > 0:36:21Right, just had a message. esure have been back on the phone.
0:36:21 > 0:36:24And they've only got an hour to speak to me.
0:36:24 > 0:36:27Probably another meeting. Let's find out what's going on.
0:36:27 > 0:36:29I have a feeling that this could be a turning point
0:36:29 > 0:36:32and that all that research is about to pay off.
0:36:32 > 0:36:33Right, here goes. What's the update?
0:36:35 > 0:36:38The update is, we will not be voiding the policy.
0:36:38 > 0:36:42And we will be passing the claim back for assessment again.
0:36:42 > 0:36:47Bingo. Just what I wanted to hear. Looks like we're back in business.
0:36:47 > 0:36:50It seems that, after my e-mail, esure got in touch
0:36:50 > 0:36:53with the Financial Ombudsman service before their ruling
0:36:53 > 0:36:58and told them they were going to do a U-turn. Great, but what now?
0:36:58 > 0:37:01We'll be reinstating their policy and dealing with the whole thing
0:37:01 > 0:37:03as fast as we humanly can, to minimise any stress on them.
0:37:03 > 0:37:05Which is really good news.
0:37:05 > 0:37:07We'll be dealing with the claim.
0:37:07 > 0:37:09How we will be dealing with the claim, I'm not sure.
0:37:09 > 0:37:11This is all brilliant,
0:37:11 > 0:37:14but what really changed their minds about Sadiq's claim?
0:37:14 > 0:37:17Genuinely, hand on heart, going through it now,
0:37:17 > 0:37:24- it is a case of, you know, extreme naivete, but not deliberate.- No.
0:37:24 > 0:37:26But the question about paying out
0:37:26 > 0:37:29and voiding the policy is the important one.
0:37:29 > 0:37:31We should not have voided that policy.
0:37:31 > 0:37:33I've rung the bell, but don't forget,
0:37:33 > 0:37:35we're still waiting for that payout.
0:37:35 > 0:37:37Cheers, bye.
0:37:37 > 0:37:41I like it when you deal with someone who knows what he's talking about.
0:37:41 > 0:37:45I've got a feeling Sadiq is going to be jumping over the moon.
0:37:45 > 0:37:49Sadiq and Mohima have been very, very fortunate
0:37:49 > 0:37:51and there's lessons to be learned here by all of us.
0:37:51 > 0:37:54It's such a big problem that esure agreed to meet me,
0:37:54 > 0:37:57and what better place than a 500-year-old boozer?
0:37:59 > 0:38:01Hope they serve tea!
0:38:02 > 0:38:05We've heard how underinsurance is such a big issue,
0:38:05 > 0:38:07and the first thing I want to know is,
0:38:07 > 0:38:10what is the industry doing about it?
0:38:10 > 0:38:12Ironically, during the course of last year,
0:38:12 > 0:38:14while all this was going on,
0:38:14 > 0:38:18we e-mailed all our customers to say, do the sensible thing.
0:38:18 > 0:38:21Go through your house, write everything down.
0:38:21 > 0:38:24Put a value on it as to what it would cost to replace that.
0:38:24 > 0:38:27That is your contents sum insured.
0:38:27 > 0:38:30Don't just take a guess. There's no point in taking a guess.
0:38:30 > 0:38:33We've seen cases where people have lost everything in fires,
0:38:33 > 0:38:36and you know, it's a modern age, where you can take a photograph
0:38:36 > 0:38:38of everything in your house, so you know what's there.
0:38:38 > 0:38:41Give it a proper value. We'll give you a proper premium.
0:38:41 > 0:38:43Everyone's happy.
0:38:43 > 0:38:45Do you not think insurance companies, all companies,
0:38:45 > 0:38:49should have a leeway there, and allow for the fact that somebody
0:38:49 > 0:38:52who insured an item, that item might have gone up and there should be
0:38:52 > 0:38:56a certain amount of leeway to allow for that, for that sort of naivete.
0:38:56 > 0:38:57This is exactly, in the end,
0:38:57 > 0:39:00what we have judged to have happened in Sadiq's case.
0:39:00 > 0:39:04The alarm bells went off originally, but when we've looked into it,
0:39:04 > 0:39:07we've apologised to him because he has been one of these people
0:39:07 > 0:39:12where he has been caught with the rapid rise of gold prices,
0:39:12 > 0:39:16with not having taken specific attention to what's in there
0:39:16 > 0:39:19originally, so there was nothing fraudulent about this.
0:39:19 > 0:39:20This was a simple burglary
0:39:20 > 0:39:23of some items that turned out to be worth much more
0:39:23 > 0:39:25than they should've been insured for.
0:39:25 > 0:39:28The example you would give in motor insurance
0:39:28 > 0:39:31is nobody would be happy if they said, "I've got a Mini,"
0:39:31 > 0:39:34and then a claim comes in for a crashed Lamborghini.
0:39:34 > 0:39:38Sadiq, after he put that claim in, you said no to that claim
0:39:38 > 0:39:39and voided his whole policy.
0:39:39 > 0:39:42He was left uninsured, then from that moment onwards.
0:39:42 > 0:39:45Why on earth did you do that? He wasn't a criminal.
0:39:45 > 0:39:47He hadn't tried to defraud you.
0:39:47 > 0:39:50No, and in fact, unreserved apology to Sadiq for that.
0:39:50 > 0:39:53- You're putting your hands up and saying it was wrong?- That was wrong.
0:39:53 > 0:39:57Adrian, I want to thank you, especially on behalf of Sadiq,
0:39:57 > 0:39:59and hopefully, people have learned here, make sure you're insured,
0:39:59 > 0:40:02- and not underinsured. - Not underinsured.
0:40:02 > 0:40:03- Thanks for your time.- Thank you.
0:40:03 > 0:40:06You know, I really appreciate it
0:40:06 > 0:40:08when companies come along and meet me face-to-face,
0:40:08 > 0:40:12but what's become very obvious after that little chat is,
0:40:12 > 0:40:17Sadiq's problem of underinsurance is actually a major issue.
0:40:17 > 0:40:20Following on from our chat,
0:40:20 > 0:40:23Adrian has earned himself a gold star from me.
0:40:23 > 0:40:25He's been true to his word
0:40:25 > 0:40:29and e-mailed with a final settlement offer on Sadiq's claim.
0:40:29 > 0:40:32And I can't wait to see what the family makes of it.
0:40:32 > 0:40:36Right, I'll start off now, with a little bit of a ticking-off,
0:40:36 > 0:40:38but it's not just aimed at you guys.
0:40:38 > 0:40:40This is probably the majority of people out there right now
0:40:40 > 0:40:42who are insured.
0:40:42 > 0:40:46You were underinsured, and that is not the fault of esure.
0:40:46 > 0:40:49That is your responsibility to make sure that you put in
0:40:49 > 0:40:50the claims form and do everything right.
0:40:50 > 0:40:54For us, it was a shock, obviously to find that out,
0:40:54 > 0:40:57and we will put our hands up, we didn't know.
0:40:57 > 0:41:00We didn't expect them to do what they did.
0:41:00 > 0:41:03How do you feel now, if I said I hadn't been able to do anything for you,
0:41:03 > 0:41:06and you have basically got no money coming,
0:41:06 > 0:41:09and you will have trouble insuring yourself again?
0:41:09 > 0:41:13I feel as if we are in the wrong, as if we are fraudsters
0:41:13 > 0:41:16or something like that, that we've done something wrong.
0:41:16 > 0:41:18When we haven't.
0:41:18 > 0:41:21esure do agree. They don't think that you've been dishonest.
0:41:21 > 0:41:23They don't think you've tried to be devious.
0:41:23 > 0:41:26There is a grey area there, because they think you've been
0:41:26 > 0:41:30a little bit daft, that you haven't been insured fully.
0:41:30 > 0:41:34What they are prepared to do is what's called reinstate your claim.
0:41:34 > 0:41:36They're not going to have you listed now,
0:41:36 > 0:41:39as being declined insurance.
0:41:39 > 0:41:41You will be able to insure yourself.
0:41:41 > 0:41:43Fantastic.
0:41:43 > 0:41:47Brilliant relief. It is brilliant to draw a line under the chapter.
0:41:47 > 0:41:49It's a weight off our shoulders.
0:41:49 > 0:41:51I've got some more news for you.
0:41:51 > 0:41:58They are now going to pay you out, £16,346.57.
0:41:58 > 0:42:01You are, you're pulling our leg!
0:42:03 > 0:42:06They've reinstated the claim, and they are going to pay it.
0:42:06 > 0:42:12- Let me just give you that figure again. £16,346.57.- No!
0:42:14 > 0:42:17All of it? It is pretty much all of it, isn't it?
0:42:17 > 0:42:21It's actually more than all, and let me tell you the reason why.
0:42:21 > 0:42:24Not only have they been decent enough to reinstate the insurance,
0:42:24 > 0:42:27to pay out and agree to pay out,
0:42:27 > 0:42:31they're also going to give you interest on the money
0:42:31 > 0:42:35which they would have paid out, had it been eight months ago.
0:42:35 > 0:42:39Wow! You can have your gold back.
0:42:39 > 0:42:41Yeah!
0:42:41 > 0:42:43Well, thank you, Dom!
0:42:43 > 0:42:46You're fantastic. People's champion!
0:42:46 > 0:42:48- You look gobsmacked!- Yeah!
0:42:48 > 0:42:52I think Sadiq and Mohima are a little bit shell-shocked there,
0:42:52 > 0:42:54but I'm really pleased for them. It's a great result.
0:42:54 > 0:42:58esure came good in the end, and it's fair to say
0:42:58 > 0:43:02Sadiq has learned a valuable lesson in insurance.
0:43:02 > 0:43:05And he's not alone. I don't know about you,
0:43:05 > 0:43:08but I'm off to check that my policies are up-to-date.
0:43:27 > 0:43:29Subtitles by Red Bee Media Ltd