Insurance offering vouchers instead of cash settlement

[WR 1.0]

Not insurance companies but brokers.

Your numbers are a bit out.

Yes insurance company pays out for bike.

Broker collects and claims bike( sometimes for free since on his advice it written off)

Repairs frame for 4K

Sells for 35K

The numbers used was obviously overstated but just to illustrate the logic (from an Insurer POV) does not make sense.

I get what you saying about someone else getting the frame (a broker, salvage company, even the client themselves - if he buys the salvage back), repair it and resell it without full disclosure, I'd agree fully that action is fraudulent.

[stringbean]

I for one will be VERY careful in future what I buy from the classifieds

[WR 1.0]

I for one will be VERY careful in future what I buy from the classifieds

Facebook Marketplace is worse

[Dirkitech]

There is definitely things changing in the insurance world at the moment.

Was in my lbs today and they were busy trying to help a customer who had crashed his Mtb and cracked top tube.

Insurance company said they would not replace or pay out but would have it repaired for him.

Santam nogal

Not sure what the problem is here?

I had to dodge kids jumping into the road , turning a corner sharper than planned and ended up sliding with a deep gash in the carbon frame. I reported to broker (who manages our Santam insurance). Santam said to forward quotes to have it repaired and I just pay the excess. No need to try and force a frame replacement for something perfectly repairable - if that is what is being advocated.

[Me rida my bicycle]

It is an unfortunate thing but insurance companies had to start covering them selfs because people were breaking things on purpose to get new stuff (frame, wheels etc.) so because of the minority the majority is suffering for it.

[Patchelicious]

Some people feel its ok to screw large corporates because of their warped perception that they are the victims of their own choices.

[NotSoBigBen]

Not sure what the problem is here?

I had to dodge kids jumping into the road , turning a corner sharper than planned and ended up sliding with a deep gash in the carbon frame. I reported to broker (who manages our Santam insurance). Santam said to forward quotes to have it repaired and I just pay the excess. No need to try and force a frame replacement for something perfectly repairable - if that is what is being advocated.

Have to agree with this, if it's ok for your car why not for your bike?

[Patchelicious]

Have to agree with this, if it's ok for your car why not for your bike?

The only thing that I would insist on is that their repair does not affect the warranty, if there is a warranty.

[stefmeister]

I for one will be VERY careful in future what I buy from the classifieds

I've seen some frames with damage (i.e. not repaired) for sale on gumtree before, going for around R4k a pop. This was obviously from someone who bought them, perhaps on auction, from some insurance company.

 

Question: When a frame is cracked/broken, does the insurance do the same as they do with cars and write the whole thing off if the damages is more than a certain percentage? Do you just get a new frame or get paid out in full? With the rate of standards (like boost) changing etc, the former could prove to be an issue.

[Dirt Tracker]

when I had my desk top computer stolen I had to go to a 'supplier' to get a new one and the insurance company gave them the budget and they sorted the machine. It actually worked out better as their discount rate to the insurer meant I got a better spec for the budget. When I smashed the screen a couple of year later on the same desktop the insurer just transferred the cash. The screen was replaceable and a guy turned up, ticked a box and wrote it off. I used if I could buy it back for spares / repair and was told flat out no as it would get shipping off to an auction house. I took the HD out a waved good by. Both methods were fine by me.

 

I would have been annoyed if they had sent me to a PC store to replace a mac. 

Also with the economy tightening there seems to be an increase in guys who need to sell their toys and aren't getting the asking price. Unfortunately a fair few of them are coincidentally getting mugged or broken into not long after the ads expire. 

[Spinnekop]

Not sure what the problem is here?

I had to dodge kids jumping into the road , turning a corner sharper than planned and ended up sliding with a deep gash in the carbon frame. I reported to broker (who manages our Santam insurance). Santam said to forward quotes to have it repaired and I just pay the excess. No need to try and force a frame replacement for something perfectly repairable - if that is what is being advocated.

I would NOT buy that frame from you.  Even if it is safe.

 

So in effect, a second hand carbon top of the range bike like for instance the Scalpel will go for around R50-R60k

Ad the word "repaired" and you will MAYBE get it sold for around R20k?

 

Is insurance not suppose to be "in the same state as before the accident" type of scenario?

[NotSoBigBen]

The only thing that I would insist on is that their repair does not affect the warranty, if there is a warranty.

Fair comment, I didn't think that far ... [emoji106]

[Edge_Design]

Hypothetically

If a client is involved in a crash.

Bike is classed as written off and he gets paid out.

Insurance collects bike.

Repairs frame

Then sells on hub in classifieds.

Is that fraud?

Just asking

 

The answer to your question is a resounding no.

 

As far as disclosing the repair when selling - that's between them and the buyer to determine if that is a material factor. For someone who doesn't know much about bikes, they were told the repair makes it as good as new and maybe they believed that? When you sell a car, do you disclose that there was a minor ding in the back door which was repaired 3 years ago? Maybe there is an ethical obligation to disclose it but you are throwing around legal issues for someone who might know nothing about bikes (I don't know what incident you're referring to so no idea if it was a knowledgeable seller or not).

 

The only insurance fraud I've encountered on here was someone selling 2 bikes after claiming R200k+ from insurance for their theft. They were obviously caught out for their indiscretion and had to answer to the insurer.

[Opc_danny]

Ouch - Wow

 

 

 

The only insurance fraud I've encountered on here was someone selling 2 bikes after claiming R200k+ from insurance for their theft. They were obviously caught out for their indiscretion and had to answer to the insurer.

[Patchelicious]

The answer to your question is a resounding no.

 

As far as disclosing the repair when selling - that's between them and the buyer to determine if that is a material factor. For someone who doesn't know much about bikes, they were told the repair makes it as good as new and maybe they believed that? When you sell a car, do you disclose that there was a minor ding in the back door which was repaired 3 years ago? Maybe there is an ethical obligation to disclose it but you are throwing around legal issues for someone who might know nothing about bikes (I don't know what incident you're referring to so no idea if it was a knowledgeable seller or not).

 

The only insurance fraud I've encountered on here was someone selling 2 bikes after claiming R200k+ from insurance for their theft. They were obviously caught out for their indiscretion and had to answer to the insurer.

A broker friend of mine often, (maybe once every 2 months) send me pics of broken frames, where you can sometime see the car tyre marks, where owners drive over their new bikes to claim and upgrade to the new models.....

[Chingy182]

A broker friend of mine often, (maybe once every 2 months) send me pics of broken frames, where you can sometime see the car tyre marks, where owners drive over their new bikes to claim and upgrade to the new models.....

I honestly don't doubt that this happens almost every day.

Bikes, TV, Fridge, etc, etc.