Bicycle insurance

[Tandemuis]

Just now, Earn_your_turns said:

Shot, with a broker and did say I found a privatedeal. Did escalate it now to the broker again

Their feedback: Met assessor bespteek. Eis skilking is soos kwotasie van fiets winkel en nie kontant skikking nie.  So ongelukkig sal Santam net skikking in kaart betaal.

 

You need a proper broker dude...

[DieselnDust]

1 minute ago, Tandemuis said:

You need a proper broker dude...

YEah,  it appears the assessor is driving the outcome here

[Earn_your_turns]

3 minutes ago, DieselnDust said:

YEah,  it appears the assessor is driving the outcome here

Not great it seems... 
Why would this be the case, what gain...

[Tandemuis]

Just now, DieselnDust said:

YEah,  it appears the assessor is driving the outcome here

The assessor cannot determine how they pay him. This is not treating the customer fairly. They decided to pay the customer out. He can ask for the cash. This forces the client to unfairly, only shop at one option. The client has the right to buy from whoever and also whatever the client wants to buy. The client doesn't even have to buy a bike. He can go and buy cats and dogs if they so choose. 

[Tandemuis]

[DieselnDust]

1 minute ago, Earn_your_turns said:

Not great it seems... 
Why would this be the case, what gain...

some of them have "relationships" with shops to get more attractive pricing so they can save the insurer some money. In exchange for better pricing (quotations) they push the business to the shops either via paying the store and you collect your replacement goods or via a voucher/gift card etc.

They shouldn't but it still happens..... alot. I had to take it up with my broker when this happened to me. They got me the outcome I wanted.

[gerriemtb]

36 minutes ago, Earn_your_turns said:

My bike was recently stolen and the insurace is amazing enough and is going to payout in full (less excess) so super stoked!

They are going to pay into a voucher card of some kind to go and buy the bike, but a mate is selling a great bike that I'd to purchase. 

Any recomendations as tohow I'd be able to purchase a great second hand bike as oppose to going through a bike shop?

TIA

Tell them you are going to pay your next premium with a handwritten voucher...

Hope you get it sorted, and as some has advised already, get a good broker

[Tandemuis]

You could always tell them that you no longer want to buy a bike. Get the cash, buy a bike anyways and tell them you changed your mind.

[Tandemuis]

15 minutes ago, DieselnDust said:

some of them have "relationships" with shops to get more attractive pricing so they can save the insurer some money. In exchange for better pricing (quotations) they push the business to the shops either via paying the store and you collect your replacement goods or via a voucher/gift card etc.

They shouldn't but it still happens..... alot. I had to take it up with my broker when this happened to me. They got me the outcome I wanted.

If the FSB ever gets information on people doing this, they will never sell insurance ever again!

[Bub Marley]

37 minutes ago, Tandemuis said:

What insurance company is this? My wife is an insurance broker and have been for 25 years. This is ridiculous! The money for your claim should be paid into your bank account. You can then buy whatever you want with it, from whoever you want, you don't even have to buy a bike! 

 

 

16 minutes ago, Tandemuis said:

The assessor cannot determine how they pay him. This is not treating the customer fairly. They decided to pay the customer out. He can ask for the cash. This forces the client to unfairly, only shop at one option. The client has the right to buy from whoever and also whatever the client wants to buy. The client doesn't even have to buy a bike. He can go and buy cats and dogs if they so choose. 

I am an insurance broker myself and unfortunately you are wrong wrt how a payout is determined. If you read your policy wording and terms and conditions, it’ll state in there that the insurance company can determine whether or not to repair, replace or reimburse. Settling a claim onto a cash card is the new norm now and it’s mainly there to combat fraud. This forces the client to actually replace the item instead of pocketing the cash which is what a lot of clients do. 

 

Now most of the times you can get around this and I agree, having a broker will definitely improve your chances. But the point is, its still up to the insurance company to decide how they want to settle the claim.

[Bub Marley]

10 minutes ago, Tandemuis said:

You could always tell them that you no longer want to buy a bike. Get the cash, buy a bike anyways and tell them you changed your mind.

Again, this is not how it works. The job of an insurance company is to put you back into the same position you were before, not pay you cash.

 

4 minutes ago, Tandemuis said:

If the FSB ever gets information on people doing this, they will never sell insurance ever again!

This is also incorrect. If an insurance company can offer you the same thing for a cheaper price from one of their approved retailers then they’re entitled to do that. Remember the key thing is you need to be put in the same position you were before the claim. I suggest the OP use this when arguing why he wants a cash payout and claim that the bike he wants to buy is only available second hand otherwise he will be in a worse position.

[Tandemuis]

Just now, Bub Marley said:

 

Just now, Bub Marley said:

I am an insurance broker myself and unfortunately you are wrong wrt how a payout is determined. If you read your policy wording and terms and conditions, it’ll state in there that the insurance company can determine whether or not to repair, replace or reimburse. Settling a claim onto a cash card is the new norm now and it’s mainly there to combat fraud. This forces the client to actually replace the item instead of pocketing the cash which is what a lot of clients do. 

 

Now most of the times you can get around this and I agree, having a broker will definitely improve your chances. But the point is, its still up to the insurance company to decide how they want to settle the claim.

This is not treating your customer fairly. If I have a loss and have received the AOL, you cannot force me to buy from a certain place. Or a certain item. What if after the loss I decide that I no longer want to ride a bike? It seams that this needs to be investigated further as this sounds like the perfect opportunity for brokers and insurers to "take a little from the top"...

If something is insured for 10K and it is a loss and AOL was received, the client cannot be forced to replace that item. They can buy whatever they want. 

Treat the customer fairly.

[Bub Marley]

1 minute ago, Tandemuis said:

 

This is not treating your customer fairly. If I have a loss and have received the AOL, you cannot force me to buy from a certain place. Or a certain item. What if after the loss I decide that I no longer want to ride a bike? It seams that this needs to be investigated further as this sounds like the perfect opportunity for brokers and insurers to "take a little from the top"...

If something is insured for 10K and it is a loss and AOL was received, the client cannot be forced to replace that item. They can buy whatever they want. 

Treat the customer fairly.

I disagree. Treating the customer unfairly would be giving him something inferior or something different. If you’re essentially giving the customer exactly what he insured for then how is that treating him unfairly?

 

 

[Steven Knoetze (sk27)]

12 minutes ago, Bub Marley said:

 

I am an insurance broker myself and unfortunately you are wrong wrt how a payout is determined. If you read your policy wording and terms and conditions, it’ll state in there that the insurance company can determine whether or not to repair, replace or reimburse. Settling a claim onto a cash card is the new norm now and it’s mainly there to combat fraud. This forces the client to actually replace the item instead of pocketing the cash which is what a lot of clients do. 

 

Now most of the times you can get around this and I agree, having a broker will definitely improve your chances. But the point is, its still up to the insurance company to decide how they want to settle the claim.

Agreed, easy to tempt people into "disappearing" an asset in lieu of receiving more cash than they would have received selling the asset.
Reality is, with depreciation, some of these items are worth more stolen than sold.......

[Tandemuis]

5 hours ago, Bub Marley said:

I disagree. Treating the customer unfairly would be giving him something inferior or something different. If you’re essentially giving the customer exactly what he insured for then how is that treating him unfairly?

 

 

Thank god you are not my broker!

So you are one of "those" brokers that don't fight for their clients. Great.

Just doing the bare minimum for that commission...LOL

***********

I have since learned some things and the above statement that @Bub Marley only does the minimum is not true.

Here follows what I have learned from my wife who is a broker...

Again, I apologize to @Bub Marley.

****************

I need to apologize to @Bub Marley.

My wife explained to me that not all brokers have the same agreements, facilities and leverage with insurers in order to do certain things. She said that some brokers have to fight and work 10 times as hard for their clients, in order to get the same results.

She explained that they have a couple of million in one of their accounts from which they pay certain clients directly without the insurance company, and every month they square up with the insurers and get their money back. While other clients go the normal route and get paid by the insurers directly.

This combined with 20+ brokers in a single building, with other buildings across South Africa, who can move their entire combined book to a different insurer if another insurer gives them too much trouble, also gives them the leverage to "get away" with certain things.

I have personally heard her on the phone once, telling a branch manager of one of the insurance companies that she will move her entire book away from them if they do not pay out her client's claim immediately. After that phone call she phoned said company's CEO who then immediately arranged for payment. The branch manager phoned back 20 minutes later, very apologetic. She explained to me that this is NOT the norm and she only gets to do that a handful of times a year.

She explained that they are actually very privileged and it is not that easy actually and not a given.

I have just come accustomed to this and her handeling our insurance and our friends  insurance....and for some reason thought that this is how it works everywhere and that if brokers can't do this, they are somehow at fault.

She also explained that if you do not have those agreements you are at the mercy of how someone elses day is going on that specific day. 

She further explained that what is normal for them doesn't necessarily constitute as normal for someone else and in fact can be difficult or impossible for someone else. Insurance companies change branch managers, contacts come and go, relationships are not forever and sooner or later someone has to fight harder in order to get something.

So, I want to apologize to @Bub Marley. I am truly sorry for what I said. I have learned from this, that to never assume something as normal just because it is normal to me. I apologize for saying that you only do the minimum. 

 

Edited December 19, 2022 by Tandemuis
Apology added.

[DieselnDust]

the tension in the system is the broker vs the assessor. The insurance company's interests are looked after by the assessor; the clients by the broker. If the insurance company can obtain a R140,000 bicycle for R120 000 but the client's needs have been met.

Thats win-win.

If the pay out is via a voucher card that can be redeemed at any bicycle shop then it's not unfair to the client, usually this means the excess is waived. If you want the cash you get it minus the Excess.

Where i have a problem is when the assessor gives you a voucher that can only be redeemed at a specific bike shop that may not have a like for like replacement in stock but you're now stuck with them till them can sort you out. I've had this fight and won because my broker got it sorted.