Protecta Insurance - Claim problems

[nomnomnom]

Does your company not do agreed value insurance?

They say its agreed value, but in the policy wording it says "we will pay out the market value up to the sum insured" which means if they think the car isnt worth the amount insured they can get out of paying you that amount....

dont get me wrong, insurance is awesome for just in case, but there are a lot of loopholes they can use to get out of claims. My advice is to fully read your policy wording, and ask lots of questions!

[Trouser]

Does your contract say the vehicle must be or a warrantable or road worthy state or and here is the kicker hold a current warrant? They are not the same thing, if your contract only states the vehicle must hold a current warrant and you satisfy that condition then you will be in the right, however if it states warrantable or road worthy state you may have a fight on your hands.

The high court has ruled a few times on that point. If the defect was not causative then they cannot deny your claim on those grounds.

[JMemonic]

The high court has ruled a few times on that point. If the defect was not causative then they cannot deny your claim on those grounds.

Nice to know, given my experience with some insurance companies they will use every little thing to twist out of paying out.

[schnupfy]

Great information guys, thanks for that.

To the road conditions: it was nice and sunny and the road was dry.

The contract says:

CONDITIONS AND SAFETY OF THE MOTORCYCLE
You must take reasonable steps at all times to make sure that the Motorcycle is

- roadworthy
- adequately maintained
- kept safe and protected from possible loss

I got the WoF (with 3mm thread according to the WoF statement) just 5 weeks before I headed south and 4 weeks before the accident I had a service done by BMW with no remark on the tire condition.

I think that is reasonable as no one can expect me to measure the thread of the tires every time before I go for a ride.

The insurance is now getting VTNZ to check the bike after I objected. Will hopefully get some good news tomorrow...

Thanks again guys.
Marcus

[MSTRS:Me]

They say its agreed value, but in the policy wording it says "we will pay out the market value up to the sum insured" which means if they think the car isnt worth the amount insured they can get out of paying you that amount....

Then it's NOT agreed value, is it?

[Gremlin]

Then it's NOT agreed value, is it?

From what I have been told, agreed value almost doesn't exist in NZ, unless it's something like classic cover for old bikes.

Been there, tried that. Over insure, they will pay you market value, under insure, they'll pay to the policy. Welcome to insurance.

[MSTRS:Me]

AA says this about Agreed Value

This is what The Insurance Council of NZ says...

Agreed Value
This is where you and your insurance company agree on the value of the car at the beginning of the contract and at each renewal. If your car is written off, you are paid the agreed value in the policy.

Watch this one when renewing cover...

[schnupfy]

AA says this about Agreed Value

This is what The Insurance Council of NZ says...

Watch this one when renewing cover...

So that means if they ask you for a value of the bike and you give them one, they basically agree on that? In that case they would have to pay more than BMW valued the bike at (which is too low from what I can tell) anyway...

The review process from the insurance is still ongoing. I wonder if they can keep the "review" going for month... Has been almost 2 now without any real news (other than claim declined)...
Man that is annoying...

[MSTRS:Me]

Please correct me if I'm wrong...
As I understand insurance, you take out a policy for bike X, covering it for the amount you paid. If you crash it, the insurer will either fix it or write it off, dependent on what they say it's worth (market value). This has little to do with what you paid for this particular bike, assuming that the policy is quite new. If you aren't happy with that amount, it is up to you to provide proof that your particular bike was worth more than the market is currently paying for that make/model.
To avoid this hassle, you may opt for an agreed value policy. You will have to provide proof upfront that your bike is worth what you say it is. And you will have to do that at each renewal of the policy, otherwise the value reverts to market rates.
Are you saying that the insurer accepted your individually valued bike for cover (agreed value policy) and then reneged on the deal? Or did you ensure it for what you paid (more than market value) and the insurer wouldn't honour that value?
There is a world of difference...

[schnupfy]

Hey.

sorry you are right, I misread your post. I have only given them the value of the bike when I signed on for the insurance. So it is not the same as the agreed value you mentioned. Still a bit silly why they ask you in the first place and you pay a higher premium although you might never get the money you had given them.

Cheers,
Marcus

[MSTRS:Me]

Hey.

sorry you are right, I misread your post. I have only given them the value of the bike when I signed on for the insurance. So it is not the same as the agreed value you mentioned. Still a bit silly why they ask you in the first place and you pay a higher premium although you might never get the money you had given them.

Cheers,
Marcus

It has ever been so. You can bet your boots that the small print on the policy will cover this.
The owner is always responsible for ensuring the value being covered is accurate. The insurer will happily take your premium money, but will not pay out more than the market value. Very difficult to prove your bike was worth more, when it's a twisted wreck, eh?
This has caused many people a lot of problems over the years, hence Agreed Value becoming a popular method of insuring.

[DMNTD:Me]

The owner is always responsible for ensuring the value being covered is accurate. The insurer will happily take your premium money, but will not pay out more than the market value. Very difficult to prove your bike was worth more, when it's a twisted wreck, eh?
This has caused many people a lot of problems over the years, hence Agreed Value becoming a popular method of insuring.

Hence why it's good to do a PAV before there's any "A" involved

[MSTRS:Me]

Hence why it's good to do a PAV before there's any "A" involved

Indeed.
What's to stop anyone from taking out a policy for $20,000 (say) on a bike that's worth less than $5,000, and then 'having an accident', to claim the pingers?

[DMNTD:Me]

What's to stop anyone from taking out a policy for $20,000 (say) on a bike that's worth less than $5,000, and then 'having an accident', to claim the pingers?

Brains...hopefully
Very different if someone acquires a mint deal at time of purchase. $5,000 for a $20,000 bike...insures it for $20,000.

[MSTRS:Me]

Very different if someone acquires a mint deal at time of purchase. $5,000 for a $20,000 bike...insures it for $20,000.

Yeah, that's another one where the insurance industry can 'get' you....
If they find out that $5000 was what you paid, and you didn't provide other proof that it was worth $20,000 - no prizes for guessing what they'll pay out...