Cyclesure issues

[bmw1za]

Hi all , help ..

 

 I bought a brand new bike in  2014 for 32k 

 

Insured it for 32 K .. Crashed Sunday , replacement parts total 15 K   . Insurance approves the claim but ... 

 

My bike is since discontinued, and the replacement model is 76K   ( Team edition with durace and high spec parts)

 

There fore they will only pay out 5400 less excess since i am under-insured for the new Bike 

 

I am not claiming  for a new bike !!!  lots of emails and phone calls later ... no joy, The Boss at cyclesure says i'm under-insured for the replacement bike of 76 000 rand 

 

What am i missing ??? Im insured at R32 000 , repairs are 15 000...  is 32 k not enough to cover 15k ???

 

Thank you cyclesure !!!

 

Any advice on how to proceed further ?

[Butterbean]

Yoh not a nice one grant. I had a claim for wheels with I-cycle and also had to fight the claim quite hard. I think the cycle specific insurers take fairly large chances hoping you'll just accept whatever they say.

 

The it further with higher management, if no joy, go to Ombudsman.

[Fr33rider]

Read the policy, they average your claim if you are underinsured

 

I was also sent an email at the beginning of the year reminding me of the same and to note that the rand had depreciated and to check the value of my bike to make sure it is insured for the correct amount.

[PeterF]

Read the policy, they average your claim if you are underinsured

 

I was also sent an email at the beginning of the year reminding me of the same and to note that the rand had depreciated and to check the value of my bike to make sure it is insured for the correct amount.

Also received an email from Cyclesure suggesting that I make sure I am not under insured due the depreciating rand.  I got a quote and adjusted the policy accordingly.

[Iceman.]

 

While it is important not to have your bike underinsured, it is also a money making opportunity for them to charge higher premiums.

 

And then when you claim, you probably underinsured again.

 

Insane experience. Sorry to hear that frustrating news Bmw1za. Change your insurers after it's sorted out.

[Brickleberry]

Unfortunately that's how it is. You should be insured for what that bike would cost you to replace in 365 days time if it's gone. They gonna be sticky , but within their rights. Always better to go through a broker who can explain this and make sure you are covered correctly. Sorry for crap news .

[bmw1za]

i was hoping its just my maths ...frowning face 

[tjommies3]

Seems like its one hiccup after another. Sorry to hear about you having little to no joy with your claim. I hope it gets sorted sooner than later.

[Bizkit031]

Don't play go to the Ombudsman and see what your options are.

[Dazshell]

In my opinion, the OP is not under-insured.  He is 100% adequately insured for the bike he bought.  If he had suffered a 100% loss, he would have accepted the fact that he only had R32000 cover and would have had to pay in to get a new bike or find a secondhand one at the same price as his old one.

 

I have just had a discussion this week with my broker about this.  My bike is covered for what I paid and that is all the will cover.  They are happy for me to get a replacement valuation and will then cover this same bike for the new amount.  Obviously the premiums will go up but that is understandable.

 

 

I would fight this!

[Captain Fastbastard Mayhem]

Yep, that's how it is. You need to keep your bike insured for its new replacement value, otherwise you'll be averaged. 

 

IE: Cost of repairs = 15k.

 

Insured for 30k but replacement cost = 100k therefore claim paid at 15,000 x 30%

[Captain Fastbastard Mayhem]

In my opinion, the OP is not under-insured.  He is 100% adequately insured for the bike he bought.  If he had suffered a 100% loss, he would have accepted the fact that he only had R32000 cover and would have had to pay in to get a new bike or find a secondhand one at the same price as his old one.

 

I would fight this!

unfortunately, your opinion is incorrect. 

 

Short term insurance, with the exception of motor vehicles, is there to cover you for the full replacement cost of an item that you own, at the prevailing market rate for a brand new version of that particular item. Not a 2nd hand replacement. 

 

It's a standard arrangement with the majority of insurers. For the most part you'd better make sure you are insured for the brand new replacement value of your insured goods. So it comes down to a percentage of liability or ownership. If you only insure something for 50% of its replacement value, you only get paid out at a rate of 50% of the loss. If it's a full loss, then you get your insured value. If it's a partial loss (like this case) you don't/

 

Taken from Santam's website:

 

Average

An insurer compensates the insured for lost or damaged property according to the percentage of its responsibility if the insured property is insured for less than its value. This is applied by the insurer on each claim the insured makes regarding the property. A house insured for R200 000 but valued at R400 000 is insured for half its value, therefore, every time the insured claims for loss or damage to that property the insurer will only compensate for 50% of the claim and the insured will have to meet the costs of the remaining 50%.

[bmw1za]

In my opinion, the OP is not under-insured.  He is 100% adequately insured for the bike he bought.  If he had suffered a 100% loss, he would have accepted the fact that he only had R32000 cover and would have had to pay in to get a new bike or find a secondhand one at the same price as his old one.

 

I have just had a discussion this week with my broker about this.  My bike is covered for what I paid and that is all the will cover.  They are happy for me to get a replacement valuation and will then cover this same bike for the new amount.  Obviously the premiums will go up but that is understandable.

 

 

I would fight this!

We are on the same page , Thanks 

[bmw1za]

Yep, that's how it is. You need to keep your bike insured for its new replacement value, otherwise you'll be averaged. 

 

IE: Cost of repairs = 15k.

 

Insured for 30k but replacement cost = 100k therefore claim paid at 15,000 x 30%

thats what they saying ..

[Brickleberry]

 

In my opinion, the OP is not under-insured. He is 100% adequately insured for the bike he bought. If he had suffered a 100% loss, he would have accepted the fact that he only had R32000 cover and would have had to pay in to get a new bike or find a secondhand one at the same price as his old one.

 

I have just had a discussion this week with my broker about this. My bike is covered for what I paid and that is all the will cover. They are happy for me to get a replacement valuation and will then cover this same bike for the new amount. Obviously the premiums will go up but that is understandable.

 

 

I would re look that, OPs bike is insured at 2014 premiums for a 2014 replacement , policy should have been updated twice since then if he had a broker worth his salt. Therefore total replacement today , 2 years later is 72 k while insured sum is for 32k therefore half under insured as premiums payed have been for half the value . Not saying it's right, it's crap, but that's how insurance works.

 

Better to use a broker so this fine stuff gets done right. Try your luck, and I hope you come right mate. Hate insurance for this exact reason .

[bmw1za]

unfortunately, your opinion is incorrect. 

 

Short term insurance, with the exception of motor vehicles, is there to cover you for the full replacement cost of an item that you own, at the prevailing market rate for a brand new version of that particular item. Not a 2nd hand replacement. 

 

It's a standard arrangement with the majority of insurers. For the most part you'd better make sure you are insured for the brand new replacement value of your insured goods. 

 

Taken from Santam's website:

 

Average

An insurer compensates the insured for lost or damaged property according to the percentage of its responsibility if the insured property is insured for less than its value. This is applied by the insurer on each claim the insured makes regarding the property. A house insured for R200 000 but valued at R400 000 is insured for half its value, therefore, every time the insured claims for loss or damage to that property the insurer will only compensate for 50% of the claim and the insured will have to meet the costs of the remaining 50%.

i understand the argument, but its illogical to buy a bike for 32k , insure it for 76k.. then they hit you with intent , mmmm

 

hypothetical: my bike was stolen , its insured at 32 k... will they then pay me out 76k because thats what the replacement value is ? 

 

Or is it a Lose ,Lose situation..?