Insurance Advice Needed (Average Clause)

[Patchelicious]

A good broker can accurately answer all these questions for you. Get one, it’s worth the small communism they take.

[RocknRolla]

Apart from the communism, Brokers are pretty handy like Patch says. Even better when they are a really good broker. Taking a week to respond to a query is not service in my books, even for Africa.

[Danger Dassie]

MODS - Probably best to merge this with the existing thread ? ... 

 

[jock_the_GIANT]

1 hour ago, Sid the Sloth said:

Does anyone know what the Discovery Insurance structure on bikes is like? I insured mine for the build value in parts as I sourced everything second hand. I am wondering what would happen if I crashed and needed new Canyon specific bars, for example?

Not 100% sure about Discovery insure, but most all-risk insurance works the same. If you crashed, you need to get a quote, they will pay the value of the quote. Remember best practise with All risk items is, to insure for replacement value and not what you paid. 

Ps: if your bike is insured for R5000 and the replacement part cost R6000, they will only pay R5000.

[ChrisF]

1 hour ago, Patchelicious said:

A good broker can accurately answer all these questions for you. Get one, it’s worth the small communism they take.

 

Especially as the answers differs ever so slightly between different insurances houses, sometimes even between packages ....  "small differences" in wording DO make one mother of a difference in how a claim is dealt with ....

 

A GOOD broker is the only way to go. 

[AllTerrain]

1 hour ago, Mountain Bru said:

Anyone have any idea what the story is with claims on Naked insurance? I just took a pic of my bike and told them how much it'll cost to replace it. But now I'm concerned about my situation is going to be if I ever claim. 

They seem pretty reasonable though compared to my previous insurance through a broker. Here's a link if you want a quote: https://www.naked.insure/?utm_source=naked_referral&utm_campaign=UKT79384

And I've heard stories of KingPrice insuring your bike for R1 if you insure your car with them. Anyone know anything about that?

I have just moved my whole insurance (household, cars and bicycles) to Naked. Their prices are better then anyone else at the moment, and I decided to move over to them after speaking to two friends on separate occasions that are with them, and they only had good things to say about them. 

One had to claim for a bike last year - fell off a bike carrier, by the time they realised and turned back the bike was nowhere to be found (I know this sounds like a long story, but I was with them the weekend it happened, and on the way home I was driving in front of them. When they called, I was about 2 minutes ahead of them on the road and went back to help look, so I know it’s true).

This was on a Sunday afternoon. He was on a brand new bike 3 days later. You can’t ask for better service than that. 

They will ask for a proof of purchase at claim time, from what he told me, and as there was no “evidence” apart from a broken strap on the bike rack, he also had to go to the police and give a sworn statement. But other then that nothing. 

claim was submitted online from the side of the road, Monday morning they called to ask for the proof of purchase and sworn statement. He sent it back to them Monday afternoon, and Wednesday morning they told him where he can go collect the replacement bike. Excess was paid directly to the store.

 

I was bikejacked 4 years ago. Discovery took a week to verify that there were no CCTV cameras covering the area, had me go back an forth for quotations on replacements, after I gave them three quotes, I had a case number from the police, an eyewitness statement from the lady that picked me up, sent them the location data from my Strava, because they wanted proof that the ride ended where I said it did (then queried the claim because I didn’t stop my watch, which was luckily not stolen, right away, and only when I realised a few minutes later after hitching a ride… I had photos of my injuries from being knocked off the bike and all that, it still took them another 10 days to finalise the claim, then they couldn’t find an “approved” supplier that had stock, and wanted me to take a different bike, from one of their preferred suppliers. 
 

took another 2 days arguing with them that I wanted a like for like replacement, and there was stock at my preferred supplier at a price that was lower than my insured value (shop offering discount on previous year model).

 

I hope my mate didn’t just get lucky, but if I ever need to claim, Naked just needs to be slightly better than discovery, and I will be a happy camper. I’m also paying significantly less now. 

[Tomik]

So lots of unanswered questions (about insurers) and some misinformation too.

It seems everyone's broker gives different advice. Mine did call back (not the assistant this time) to confirm that if insured for all-risks, the insured amount, not new replacement value, is what is important. They will not pro-rata the payment. I guess this is similar to car insurance. I don't expect a brand new car if my 6 year old car is stolen so it is insured for current market value.

My broker also confirmed that if I crash, parts will be replaced with new parts. No pro-rata payment either. Less excess of course.

Other people on here may disagree, but I have it in writing so am happy. Thanks for all the replies. 

[Patchelicious]

1 hour ago, Tomik said:

So lots of unanswered questions (about insurers) and some misinformation too.

It seems everyone's broker gives different advice. Mine did call back (not the assistant this time) to confirm that if insured for all-risks, the insured amount, not new replacement value, is what is important. They will not pro-rata the payment. I guess this is similar to car insurance. I don't expect a brand new car if my 6 year old car is stolen so it is insured for current market value.

My broker also confirmed that if I crash, parts will be replaced with new parts. No pro-rata payment either. Less excess of course.

Other people on here may disagree, but I have it in writing so am happy. Thanks for all the replies. 

Two things to remember, if the costs of the part is greater than the sun insured, you won’t get it all.

Also, the broker doesn’t pay your claim, the insurer does so doesn’t matter what you have in writing from them. 
 

@WR 1.0 can give some expert advice here.

[cadenceblur]

4 hours ago, AllTerrain said:

I have just moved my whole insurance (household, cars and bicycles) to Naked. Their prices are better then anyone else at the moment, and I decided to move over to them after speaking to two friends on separate occasions that are with them, and they only had good things to say about them. 

One had to claim for a bike last year - fell off a bike carrier, by the time they realised and turned back the bike was nowhere to be found (I know this sounds like a long story, but I was with them the weekend it happened, and on the way home I was driving in front of them. When they called, I was about 2 minutes ahead of them on the road and went back to help look, so I know it’s true).

This was on a Sunday afternoon. He was on a brand new bike 3 days later. You can’t ask for better service than that. 

They will ask for a proof of purchase at claim time, from what he told me, and as there was no “evidence” apart from a broken strap on the bike rack, he also had to go to the police and give a sworn statement. But other then that nothing. 

claim was submitted online from the side of the road, Monday morning they called to ask for the proof of purchase and sworn statement. He sent it back to them Monday afternoon, and Wednesday morning they told him where he can go collect the replacement bike. Excess was paid directly to the store.

 

I was bikejacked 4 years ago. Discovery took a week to verify that there were no CCTV cameras covering the area, had me go back an forth for quotations on replacements, after I gave them three quotes, I had a case number from the police, an eyewitness statement from the lady that picked me up, sent them the location data from my Strava, because they wanted proof that the ride ended where I said it did (then queried the claim because I didn’t stop my watch, which was luckily not stolen, right away, and only when I realised a few minutes later after hitching a ride… I had photos of my injuries from being knocked off the bike and all that, it still took them another 10 days to finalise the claim, then they couldn’t find an “approved” supplier that had stock, and wanted me to take a different bike, from one of their preferred suppliers. 
 

took another 2 days arguing with them that I wanted a like for like replacement, and there was stock at my preferred supplier at a price that was lower than my insured value (shop offering discount on previous year model).

 

I hope my mate didn’t just get lucky, but if I ever need to claim, Naked just needs to be slightly better than discovery, and I will be a happy camper. I’m also paying significantly less now. 

Why would you need proof of purchase if you uploaded pics to their site along with replacement quotations? Referring to Naked Insurance 

 

[WR 1.0]

1 hour ago, cadenceblur said:

Why would you need proof of purchase if you uploaded pics to their site along with replacement quotations? Referring to Naked Insurance 

 

Having a photo of something doesn't mean you own it unfortunately. I've dealt with claims where clients had photos of everything. Unfortunately most of it belonged to friends (really bad luck when the assessor allocated to your claim also did an assessment at your buddies house) 

[WR 1.0]

3 hours ago, Patchelicious said:

Two things to remember, if the costs of the part is greater than the sun insured, you won’t get it all.

Also, the broker doesn’t pay your claim, the insurer does so doesn’t matter what you have in writing from them. 
 

@WR 1.0 can give some expert advice here.

Correct, All Risks are usually not subject to average. The caveat being, if you are claiming for "parts" and your groupset is almost the value of the complete bicycle you specified, your insurance might start asking questions. You might get away with it on the first claim but you will probably be asked to correct your sum insured. 

The onus is always on the client to ensure that they are insured for the correct amounts. The onus is also on the client to ensure that the premium is paid (don't blame your insurance for not letting you know your premium is due, if you forget to have enough money to cover your debit order) -

[Eugéne Alberts]

10 hours ago, Danger Dassie said:

@Patchelicious could probably answer. 

All risk items are insured on a first loss basis and average does not apply.

 

It is only applicable to the building and content section of your policy

[cadenceblur]

40 minutes ago, WR 1.0 said:

Having a photo of something doesn't mean you own it unfortunately. I've dealt with claims where clients had photos of everything. Unfortunately most of it belonged to friends (really bad luck when the assessor allocated to your claim also did an assessment at your buddies house) 

So the assumption is that fraud is at play? Naked Insurance process requests that one uploads pics (selfies in fact) of the bike to be covered along with replacement quotations supplied by a bike shop.

I therefore queried the fact that proof of payment was requested. 

 

 

[WR 1.0]

37 minutes ago, cadenceblur said:

So the assumption is that fraud is at play? Naked Insurance process requests that one uploads pics (selfies in fact) of the bike to be covered along with replacement quotations supplied by a bike shop.

I therefore queried the fact that proof of payment was requested. 

 

 

Never said anything about fraud. I just pointed out that just because you have a photo of something, it doesn't mean that you own it. An invoice or receipt is better proof of purchase / ownership. 

(for the record, I'm also insured with Naked for my vehicle). 

If you take a photo of a ring with a big shiny stone, how do you prove if it 9 or 18ct gold, whether it's a flawless diamond or a just a shiny piece of glass? 

A valuation certificate has all of the details of the item (as well as the correct replacement value) 

[AllTerrain]

9 hours ago, cadenceblur said:

So the assumption is that fraud is at play? Naked Insurance process requests that one uploads pics (selfies in fact) of the bike to be covered along with replacement quotations supplied by a bike shop.

I therefore queried the fact that proof of payment was requested. 

 

 

That was just what my mate told me. Maybe they wanted a quotation instead to prove cost of replacment and I misunderstood him. Either way, I think it better to hang onto the proof of purchase just in case.

when you take the “selfies” for naked, they require you to take a photo clearly showing the serial number, so that probably limits the chances for fraud too. I took a picture of my invoice for the bikes as well when I added them, and those invoices also all had the serial numbers on them. So there should be no issues if I ever need to claim

[JJDT]

20 hours ago, Mountain Bru said:

Anyone have any idea what the story is with claims on Naked insurance? I just took a pic of my bike and told them how much it'll cost to replace it. But now I'm concerned about my situation is going to be if I ever claim. 

They seem pretty reasonable though compared to my previous insurance through a broker. Here's a link if you want a quote: https://www.naked.insure/?utm_source=naked_referral&utm_campaign=UKT79384

And I've heard stories of KingPrice insuring your bike for R1 if you insure your car with them. Anyone know anything about that?

I'm with King Price and yes two of my bikes are insured  with R1 deal. Had 3 claims for damages on the bike as well as a helmet claim which was settled promptly after providing details and quotations.