Other Insurance Cheque and Bank

M

mrissue

Registered User
Messages
7
I have received a settlement cheque for a property claim
it is made out to me and the bank
I cant lodge it I called the bank and insurance they told me to send it in to the
bank and that they would endorse it
called bank today and they want to pay out a small amount at a time to me
can they do this
cheque is for over 20000
I have a lot of materials to buy and contractors to pay
 
That seems odd. Usually if a cheque is issued in joint names from an insurer, a client usually gives it to the bank and they reissue a cheque in your name. I would definitively question why they want to issue a small amount at a time.
 
Wondering how you got on. I have had the same cheque made out to me, my husband and the mortgage provider. It’s a big internal leak but no major damage done to the property and it has to be fixed. Presumably if the mortgage is up to date and insurance works needs to be done this is just cleared. I bank with same bank so I guess that’s easier too.
 
Shellie C said:
Wondering how you got on. I have had the same cheque made out to me, my husband and the mortgage provider. It’s a big internal leak but no major damage done to the property and it has to be fixed. Presumably if the mortgage is up to date and insurance works needs to be done this is just cleared. I bank with same bank so I guess that’s easier too.
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The OP hasn't been online in a decade.
 
The purpose of a joint payee on the settlement cheque is to allow the bank's interest in the insured property to be validly recognised and for them to be satisfied that their interest has been protected.

The bank is either satisfied that all is in order or they are not.
They seem to be satisfied if they are prepared to allow payment to the OP.

What I do not understand is the basis on which the bank presumes that they can release payment in staged tranches.

I would address a formal complaint to the bank that they are improperly retaining funds that are now due to you in full and that you want immediate payment now as you need to mitigate your losses by getting the works done promptly. You can always threaten them with a complaint to the ombudsman unless they provide a satisfactory explanation.

I am aware that insurance companies may retain final payment(s) on building repairs pending sight of final accounts.
That is usually made clear in the insurance contract wording and that is perfectly fair enough.
On what basis are the banks releasing funds in tranches ?
 
What's a 'small amount'? If you need to pay for repairs and show the bank the invoice, there is no reason why they would not issue a payment?
 
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