ASK TONY: Why was this insurance claim lost after my son died? | Th...

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ASK TONY: Why was this insurance claim lost after my son died?
By Tony Hazell Last updated at 9:38 AM on 28th September 2011
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My son, who died in April of heart failure, had a motor scooter stolen in June last year. He was insured with NIG. While clearing through his possessions, his mother discovered that, although he had made a claim in July 2010, nothing had been paid. My eldest son has been in contact with NIG and has sent a copy of the death certificate. His mother and I are disabled pensioners and cannot understand why it is taking so long to pay this claim. A. B., Dundee.

Your tragic year has been made more difficult by a bungling insurer that couldnt be bothered to explain the issues clearly and deal with your legitimate claim properly. NIG is owned by RBS (which, in turn, is owned by us as taxpayers). Heres how they repay us. Someone at the insurer had difficulty reading your sons writing. Rather than investigate further, he or she simply stuffed the letter in a drawer and ignored it! NIG accepts this is inexcusable and has sent the person for re-training. The bank did face one legitimate hurdle. While your son has tried to handle the claim, the bank can only legally make the payout to the executor, which in this case is your wife from whom you are separated. NIG did not have her details, but this is no excuse it should have made some effort through you or your son to track her down. It has now sent her a cheque for 1,075. This is 125 more than its original offer and covers the full cost of the scooter, plus 25 for phone calls.

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In light of such breathtaking incompetence, I asked NIG to make a further payment for the stress and inconvenience suffered by you and your eldest son. It initially came up with the bizarre argument that this could be seen as trying to compensate for your sons death and instead sent a statement of apology. When I continued to push, it finally agreed and is sending a further 175 to you as a personal apology, making the total compensation 300.

Why is the bank saying mum took out three times the sum she did?
My 78-year-old mother withdrew 300 from a cash machine on July 11. The available balance on the slip after the withdrawal read 2,566, but the account balance was previously 3,466. This implies that 900 was withdrawn. I have written to her branch three times, but they have not acknowledged my letters. Ive also written to customer services in Leicester, but they did not respond, either. F. H., London. The good news is that your mother hasnt lost any money. It seems your mother has been making regular daily withdrawals of 300 for some time. In this case, she had made one on the Saturday, another on Sunday and the third on Monday. Although each of these was deducted from the available balance, so she knew how much she had left, it was not deducted from her main account balance. It probably seems bananas to you as it does to me but despite it being 2011, banks still dont update your account at the weekend. So the withdrawals were not deducted from the account balance until the Monday evening. So on Saturday there would have been a 300 difference between the account balance and the available balance, on Sunday the difference would be 600 and on Monday it reached 900. The other question you have a right to ask is why nobody at Barclays, either at the branch, or the so-called customer service department, answered your query. Barclays says it only has a record of receiving one letter from you, which arrived on August 2 and this was acknowledged on August 4. This suggests it was the branch, rather than customer services, that failed to respond.

Why is Santander taking tax off me?

I invested in a one-year bond with Santander paying 3.01 per cent. I completed form R85 which means I should not have tax deducted from my interest. In April my statement indicated tax would be deducted, so I phoned to query this and was told the error would be corrected. But guess what happened my interest was paid on June 30 with tax deducted! When I phoned to complain, I was told I could pay 10 for a letter registering the complaint.I have now been told I must reclaim the money 63.43 from HM Revenue & Customs. T. C., London. Why on earth didnt somebody in the customer services department pay your tax back without a quibble? Once I contacted the press office, the money was immediately paid to you. As you said to me: Its like you waved a magic wand. Its just a shame I cant wave my magic wand over the whole bank and turn their pigs ear of a service into something much better.

Where should I invest my 75k

Where can I invest 75,000? I am married, 68, retired and a basic-rate taxpayer with an occupational pension.

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I dont need the money for everyday use and am quite happy to tie the amount up for five or more years. Im not a risk-taker, but a steady investment that would beat, or at worst keep up with, inflation would be invaluable. Im quite adept at internet banking, but none of the accounts keep their value against inflation. R.G.B., Oxon. It is not clear from your letter whether these are your only savings or some extra money you have sloshing around. But the fact that you say you are not a risk-taker suggests to me you are looking to preserve your capital. So lets exclude stock market investments. I would also steer clear of the stock market-linked bonds offered by banks and building societies. The charges are high and the returns rarely as good as the tempting figures dangled in front of you you could just get your capital back, which certainly wouldnt fit your aim of beating inflation. Sadly, National Savings & Investments has pulled its inflation-beating bond and it will not be back before April at the very earliest. Rates offered on fixed bonds by banks and building societies have dropped recently, but with inflation expected to fall next year, some of these should fit your brief. Start by using your cash Isa allowance to get the maximum tax-free income. You and your wife can each put in 5,340 this tax year, which ends on April 5 and you have a further allowance each year afterwards. The Post Office pays 3.75 per cent over two years and 4 per cent over three years. You could earn 4.5 per cent over five years from Yorkshire or Clydesdale Banks both of which should prove to be inflationbeaters but be quick because the latter two are being withdrawn on Friday. If your wife is a non-taxpayer, you would do better to put the savings into her name. You could consider C&Gs three-year stepped bond. As a basic-rate taxpayer you would earn an average 3.4 per cent over the period, but a non-taxpayer would earn 4.25 per cent. Over five years Saga has an internet-only bond paying 3.72 per cent after basic-rate tax, worth 4.65 per cent to a non-taxpayer. You must decide whether you feel the extra is worth fixing for two more years. Straight to the point My Scottish Provident endowment matures on September 1. Ive saved 53 a month for 25 years. The company has said the policy will pay 27,010. You recently printed examples saying this endowment pays more, so is this figure correct? M. J., by email. Scottish Provident say the figures are correct. The difference is down to your age. In our example, the man started paying in at 30 while you were 44. The older you are, the more of your monthly premium goes towards the cost of life insurance, so there is less to go towards the investment that provides your final pay-out. Is home emergency insurance for plumbing and drains a waste of money if you have standard building and contents insurance? L. T., London. Not necessarily. Home emergency covers you for the repair of such things as burst pipes or blocked toilets, so when you need to call a plumber in the middle of the night, the policy will pay out. Your home insurance would not; it pays for the drying out, repairs and replacements. My Sky satellite dish fell off the wall. I thought I was told it would be free to repair, but they charged me 50. I queried this and cancelled my direct debit, and Sky called in a debt collector. G. D., York.

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Sky says you were wrongly advised that the dish would cost 50 to replace as new customers are entitled to a free service for a year. It has called off the debt collectors and apologised. It has also sent you a gesture of goodwill. I have a bonus certificate from Royal Liver Friendly Society dated 1953. How do I contact it? A. K., St Ives, Cambs. Royal Liver Assurance (including the friendly society) was sold to Royal London Mutual in July. But you can write to its original address at Royal Liver Assurance, Royal Liver Building, Pier Head, Liverpool 3 1HT or tel: 0151 236 1451. Write to Ask Tony, Money Mail, Northcliffe House, London W8 5TT or email asktony@dailymail.co.uk please include your daytime phone number, postal address and a separate note addressed to the offending organisation giving them permission to talk to Tony Hazell. We regret we cannot reply to individual letters. Please do not send original documents as we cannot take responsibility for them. No legal responsibility can be accepted by the Daily Mail for answers given.

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