Need Questions Answered about Insurance?

[Oscar]

Ah. Now this I know a little about. You are correct , in so far and ONLY in so far , as the changed circumstances are such that knowledge of them in the first place would have caused a reasonably prudent person not to enter into the contract in the first place. The contract can be voided ab initio, or from the time that the chnaged circumstances came into effect.

So, performance modifications, if significant , might be such. A reasonably prudent man might say "I thought I was agreeing to insure a docile shopping basket. Had I known that a turbocharged V8 had been put into it, I would never have agreed to the contract in the first place. The nature of the insured risk has materially changed. This vehicle is not, in fact, the vehicle I agreed to insure". The same cannot be said of the case where a registration lapses . There is no material change in the nature of the risk, or of the goods insured.

BTW , is there an Insurance Ombudsman? It seems very wrong and improper for insurance companies to be putting out contracts with such straw clauses in them. If I were taking out insurance and were offered such a contract I would strike out such clauses, and if the insurer objected, say farewell. But most people will not take the trouble to read such documents.

I also remind you that uberissime fides runs both ways. I think that a very good argument could be made , that by incorporating such clauses, the insurance company is not in fact acting in "utmost good faith", and is precluded from the benefit of ANY exempting clauses.

The act says any change in the risk must be "material" and material is defined as a fact that if known, would have changed a "prudent insurers" action in accepting the risk. Failure to register a vehicle is NOT material.

There is an Insurance Ombudsman, and both that office and the courts have hammered insurers over the years for using those "straw clauses".

[NSR-Dan]

yeah comes down to how much the insured new about the vehicle in hand. alot of cars w are insured with mags and other mods that were done before the insured bought the vehicle. of the insured has done alot of mods to the vehicle themselves and did not advise this it would cause probs when the insurer found out.

insurance companys allways contract TP investigators and assesors, most of the time the courts go on what they say.

[Oscar]

yeah comes down to how much the insured new about the vehicle in hand. alot of cars w are insured with mags and other mods that were done before the insured bought the vehicle. of the insured has done alot of mods to the vehicle themselves and did not advise this it would cause probs when the insurer found out.

insurance companys allways contract TP investigators and assesors, most of the time the courts go on what they say.

You live in this country, eh?
New Zealand?

[James Deuce]

Brain overloaded.

Reset mode enabled.

[NSR-Dan]

The act says any change in the risk must be "material" and material is defined as a fact that if known, would have changed a "prudent insurers" action in accepting the risk. Failure to register a vehicle is NOT material.

There is an Insurance Ombudsman, and both that office and the courts have hammered insurers over the years for using those "straw clauses".

Yeah the ombudmen is there for the consumers, we send our policy changes there to be accepted before making the official change.

ill have to check that about the material thing. only time i have had a court hearing involving unroadworthy vehicles was when they were unwarrented when first insured, so they lied on the questions when taking out the policy. (we ask if the vehicle has a current wof)

i admit i could be wrong.

[NSR-Dan]

You live in this country, eh?
New Zealand?

yeah auckland

[NSR-Dan]

wow how the hours have flew buy.

[James Deuce]

Reset failed.

Downloading new BIOS from manufacturer.

[Oscar]

Reset failed.

Downloading new BIOS from manufacturer.

Do they still make them for XT processors?

[James Deuce]

Mum told me I was an AT. Oh well.

[crazybigal]

Ok so what if you were given the car or bike? you didnt pay a cent for it .so according to your rules you cant insure it!

And agents allways try to get you to over-insure a car, its how you make $$$
then when its time to pay up! you dont get what you agreed on.

I tried to insure a Car (alfa) with AA and the rates were good, i think $100 less than state but you wouldnt insure my girlfriend at the time because she was under 21. So i got stuck with state:-( as they were the only ones who would.

naughty agent, if its a new car we should allways ask what the purchase price is.

if you do however pull a cheeky you can sometimes insure your car for more than what you payed just dont tell the agent what you did pay for it. but then there is the downside, if the value you say alot higher than the estimation on the companys systems they can request a valuation before accepting your value, and sometimes if it comes to a total loss claim, and the company thinks it was insured to high they will ask for your purchase agreement and then pull up the recorded call when you took out the insurance to see if what you told the agent and what your purchase agreement states adds up. (when you signed your decleration at all companys there is a bit that states "you agree that everything you have stated is the truth" etc.

[crazybigal]

and do you still pay the other party(may have no insurance) that gets hit by your customer if you have declined their insurance cos he was speeding?

etc.

and someone excesive speeding and then has a crash doesnt deserve to paid out anyway, would you want some one who was driving round a corner at 130kmh, cross's the center line and hits an oncoming car and kills the occupants then be paid out for repairs on there car. anyone in there right mind would say no. or how about drunk drivers that kill people everyday. people on p that drive into crouds or houses, think there insurance companys should pay for there cars and third party liability, i dont think so, they go to court and end up paying out of there own pocket.

[NSR-Dan]

Ok so what if you were given the car or bike? you didnt pay a cent for it .so according to your rules you cant insure it!

And agents allways try to get you to over-insure a car, its how you make $$$
then when its time to pay up! you dont get what you agreed on.

I tried to insure a Car (alfa) with AA and the rates were good, i think $100 less than state but you wouldnt insure my girlfriend at the time because she was under 21. So i got stuck with state:-( as they were the only ones who would.

some agents try and over insure a car if its a market value policy because you will pay premiums on the sum insured but they will only pay the market value of the car at the time of total loss. if its agreed value it usually accurate because what ever it is insured for is what the company will pay regardless of market value.

if you say the car was given to you, then the will insure the car for whats on there systems. if you say you payed a certain amount for it they will insure it for that amount. all depends on what you tell the company. similar if someone calls to cancel a joint policy (2 named policy holders, usually married couples), an insurance company will cancell the policy if you tell them you just wanted it canceled but if you mention its due to divorce or a death then the insurance company has to ask for divorce or death certs, cause it can cause problems further down the track with the policy holders solicitors, for example the wife calls to cancel the policy when they are divorced but during the court hearing the husband is given ownership of the vehicle, so we can see who owns the car and its up to husband to decide if he wanst the ex wife removed or the plicy cancelled.

so with insurance companys its best to be vauge when answering questions.

[NSR-Dan]

and do you still pay the other party(may have no insurance) that gets hit by your customer if you have declined their insurance cos he was speeding?

nope, if he is insures his compnay will recover costs. if not its up to him to take the guy to court

[gamgee]

sorry, can i just get something cleared up, my bike is insured at market value, but I'm only paying my premium on the value I bought it for about $2500, but the dealers are selling the same bike for $4000, so if my bike was stolen, would the insurance company pay out the market value - $4000?