Apple i phone insurance

ken from bexley

Just wondered if anyone has had an issue that my sons partner has experienced this week.

Had mobile phone insurance for several years through a bank, had to make a claim just before christmas, the i phone was repaired by the banks, and she paid the excess. She was expecting a new phone, as she had dropped it down the toilet. It was an 'i phone 6', which she had had for only a few months,she was going to Thailand and needed a phone so sent it off, and received it back, ( i mention this as I had to sign for it as they were away on holiday) looked a decent repair, and she used it till last week, when it became faulty. So booked into apple centre and to her horror found out that an unlicensed repairer had fitted some 'poor quality parts' and invalidated the apple warranty. Apple have issued a full report for the insurance company, claiming that the workmanship was very poor, and that the parts including the board is not correct. My sons partner was horrified as she now has an 'i' phone that does not work, a contract for 18 months and the replacement for a new phone is £600. Apple will not work on the phone. She rang the insurance division of the bank, and has been asked to send in the paperwork.

Besides sending a letter of complaint to the bank and there insurance division, I have suggested that they take out a small claim court action if the phone is not repaired or replaced with a new phone and is 'apple compliant' with the manufacturers warranty within 28 days, and also contact the 'Insurance Ombudsman'.

Surely the bank\insurance company have to guarantee the repair, and use components that are similar or comapatible, that do not invalidate the apple T|C's, not some third party back street bodger, that has wrecked the integrity of an electronic component's. Yes I know Apple can be difficult with unathorised repairs, but surely there is a care of duty to carry out a repair to a phone under contract and under the warranty from Apple.

I will not name the bank........ but they have branches 'nationwide'.........

cafcfan

Not that it matters in the scheme of things but Nationwide is a building society rather than a bank.

It is reasonable to exhaust the institution's own complaints procedure before considering any other action.

The thing is, it will be important to word your complaint letter properly to ensure you get their attention and to let them know that you know they are in breach of FCA rules. They will be authorised by the FCA and the product - the insurance - will be a "regulated activity". Tell them you are making a "Formal Compaint" and that you expect them to deal with it as such. That means they are required to follow certain processes, including lodging the complaint in a "register of complaints".

Of course, while most things depend upon the terms of the policy, that is not the be all and end all. A policy document isn't worth the paper it's written on if it breaches FCA rules.

I won't go into the individual rule breaches here because it will take too long and it probably isn't necessary.
But tell them they are in breach of the FCA's High Level Standards, in particular the Principles For Businesses rules at PRIN 2.1.1 of the FCA's handbook.
Cite the following:
1 Integrity: A firm must conduct its business with integrity. (they haven't by using a shoddy cheapo repair company)
2 Skill, care and diligence: A firm must conduct its business with due skill, care and diligence. (They haven't by contracting with a dodgy repair company.)
3 Management and control: A firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems. (They didn't for the reasons already mentioned.)
and most importantly
6 Customers' interests: A firm must pay due regard to the interests of its customers and treat them fairly. (Which they haven't.)
and
7 Communications with clients: A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading. (They have misled by leading the customer to believe they would undertake a proper repair.)

You, well your son's partner really, should write to

Tim Carter
Nationwide Builing Society
Nationwide House
Pipers Way
Swindon
Wiltshire
SN38 1NW UNITED KINGDOM
Phone: 01793513513

Email: tim.carter@nationwide.co.uk

Copy your complaint to Christopher Stuart Rhodes who is responsible for insurance specifically.

In the first instance, I'd telephone Carter and ask if he is happy for the complaint to come to him by email. (If you cite the rule breaches over the phone, he may roll over and play dead straight away.) If not you'll need to cross-reference your complaint to specific clauses in the policy document and the "key facts" document.

I'd not just go for the cost of a new phone but the cost of the (clearly not fit for purpose insurance) and an ex gratia payment for the "inconvenience".

In the unlikely event that your complaint is rejected, the next stage is a referral to the Financial Ombudsman Service. Tell Carter that if the matter is not dealt with to your satisfaction then you will take this step. Here's their web site financial-ombudsman.org.uk/

On a separate matter, in my opinion specific mobile phone insurance is unnecessarily expensive and a waste of money.

I just tack on a random amount to cover anything I might take out of the house to the All Risks section of my regular household contents insurance.

I hope that helps.

cafcfan

Sorry just to add claim the excess back too.

MrOneLung

I hope you had that saved as a template !!!

cafcfan

MrOneLung said:

I hope you had that saved as a template !!!

Nah, most of it was just a cut and paste jobbie from the FCA's web site and Register of authorised firms. (Which is a handy reference point to make sure you contact the appropriate person.)

ken from bexley

Thanks for the information cafcfan, I agree with the action, and have impressed on her the importance of getting this resolved. Personally I have never bothered with phone insurance myself, as I also heard that it is expensive. Apparently Apple do repair phones for HSBC she was told. Obviously they have to receive the complaint and report from Apple, and of course they do have the right to repair the phone, the issue is the components should be of a standard that they are at least of the same quality, if not the better. I may be wrong but I think Apple phones are made in China or some such place, but they simply will only use there 'authorised repairers'.
The phone is 7 months old and is frankly useless now. They have cut corners, and been caught out.

Hopefully they will acknowledge the situation, and offer a new phone. Not a 'refurbed one' .
Pretty sure she will get it sorted, she is a PA in the financial sector,

To me it is up to the Insurers to repair or replace the item as it was before the claim, not a 'mickey mouse repair' to save a few bob . We shall see what happens......

Callumcafc

It doesn't matter where you get the phone fixed, Apple won't touch it if they can detect any sort of repair job whether it's done to a good standard or not.

This is because rather than repair phones, Apple just replace them and take your faulty one. Then they replace the parts that need replacing with new parts and use that one for the next customer that walks in with a faulty phone.

Even if the bank replaced the parts with genuine Apple parts of their own (and they know by checking serial numbers) then Apple won't touch it.

ken from bexley

I hear what you say Callum, of course they are both the manufacturer and the retailer, I have no idea if they 'refurbish' the phone, but I would assume that a phone repaired by an Insurance company would have a guarantee on the repair. I think you would also expect the repair to be equal to the component that has originally failed. In this case the phone is well within its Apple warranty, it is the Insurance company that have breached the terms of the warranty, buy using a generic third party repairer.
When I have had to get Apple computers repaired, they are done so under Apple care, or under the guarantee. I have been fortunate, but then I have always used Authorised Apple repairer's, or under a contract. Frankly the data lost on it has been more of an issue than say a hard disc going down.
Wether Nikon, Apple, BMW, or others repair there products I have found they may well use third party repairers, but they issue a guarantee that does not revoke your manufacturers guarantee.
and therefore your contract under the sale of goods act.

Anyway, we shall see what they have to say, hopefully they will have the good grace to see the wider implications, not the bottom line........ they will probably say they will replace it as a 'goodwill act '