insurance blues

[fandacious]

As most of you know I was hit by a car in a PPA race on Saturday 31st Jan 2009.

 

There was an initial delay by the bike shop in getting my bike processed and giving the info back to the assessor.

 

I impressed on both the bike shop and the assessor the urgency of the matter as I was leaving to Phuket on the 18th of Feb. Both of them assured me that everything would be handled as quickly as possible.

 

The final quote for repair on my bike was 20k. My bike is insured for 25k. The assessor then told me that my bike was under insured and that replacement value is 35k. So they applied the reduction formula to my claim. 25/35 * 20 = +/-14k.

 

I was given first option to salvage the parts for 3k.

 

So my pay out on a 20k claim is now 11k.

 

Minus the 10% excess leaves around 10k.

 

As of this morning (3/3/2009), there is still not a cent in my bank account.

 

And the argus is a few days away.

 

I've given up hope of having my bike repaired before the argus and am starting at the back on my MTB and riding with friends for fun.

 

Thanks bicycle insurance company

 

[MichaelH]

...and the insurance company and/or broker is.....?

[AndreZA]

That is not nice. Hope you get sorted. I seems like we will have to get the bikes re-assessed every day just to make sure we are not under insured. i have not done mine in 3 months so I guess I will be as well.

 

 

 

...

[gummibear]

What company is this?Have fun on the MTB. WindblownPE2009-03-03 00:25:10

[fandacious]

i'm leaving the name of the insurance company out for now - I want to see how things pan out.

 

 If you really want to know, PM me

[AndreZA]

Windblown, it is not the insurance companies fault if you are under insured. All of them work on the percentage system. How can you expect to be payed out the correct amount if you did not pay the correct amount for the premiums each month.

 

 

 

 

 

 

[fandacious]

 

Windblown' date=' it is not the insurance companies fault if you are under insured. All of them work on the percentage system. How can you expect to be payed out the correct amount if you did not pay the correct amount for the premiums each month.

 

 

 

 

 

[/quote']

 

I do kinda agree with the percentage system, but its not like i was claiming 35k worth of equipment and i was only insured for 25k. My claim was only 20k...

 

hell, my wife lost her engagement ring and it was also under insured by about 10k. insurance paid out FULL replacement value, even though it was more than it was insured for...

 

[AndreZA]

 

I do kinda agree with the percentage system' date=' but its not like i was claiming 35k worth of equipment and i was only insured for 25k. My claim was only 20k...hell, my wife lost her engagement ring and it was also under insured by about 10k. insurance paid out FULL replacement value, even though it was more than it was insured for...[/quote']

 

 

 

damn, if your wife's ring was under insured but 10k then what is it worth? If you can spend so much money on a ring why are you complaining about 10k on a bike. You obviously have the money.

 

 

 

..

[fandacious]

 

 

 

damn' date=' if your wife's ring was under insured but 10k then what is it worth? If you can spend so much money on a ring why are you complaining about 10k on a bike. You obviously have the money.

 

 

 

..[/quote']

 

 

manfrog, thats hardly the point...

 

[MintSauce]

 

Windblown' date=' it is not the insurance companies fault if you are under insured. All of them work on the percentage system. How can you expect to be payed out the correct amount if you did not pay the correct amount for the premiums each month.

 

 

 

 

 

[/quote']

 

I do kinda agree with the percentage system, but its not like i was claiming 35k worth of equipment and i was only insured for 25k. My claim was only 20k...

 

hell, my wife lost her engagement ring and it was also under insured by about 10k. insurance paid out FULL replacement value, even though it was more than it was insured for...

 

 

I don't have my Cyclesure policy with me at the moment so can't check the exact wording they use in the 'precentage system' explanation, so I'm wondering out loud here.

 

My bike is insured for 45k. Current replacement cost is probably 70-80k.

 

I can understand that if it's underinsured and I claim for a crash like Fand's that they apply the percentage system.

 

I've kept it at 45k partly because I don't expect to make a profit from the insurance company(I am too nice) and because I'm already paying R350/month and don't want to pay R700/month!

 

Let's say it get's stolen. Are they then going to pay out half of the replacement value ie +40k or half the insured value ie +20k...?

 

 

 

 

[Tankman]

so if you bike is insured for 30k and replacement value is 35k, you only get out 17k? 

then excess still needs to be paid!

I think they are ripping us off!!!!!!!!

[lowracer]

my opinion would be as follows

 

insure the bike for whatever you deem it worth like fandacious' 25000

 

if it is stolen, they only pay out what it was insured for, not replacement value

 

it doesnt make sense if i insure for 25000 (but the real replacement value is 50000) and it gets stolen, and i claim my 25000, and they only pay out 12500

 

the insurance so allways hit us with a double whammy . when it is overensured, they only pay out replacement, not the unsured value = they score as well

[fandacious]

 

so if you bike is insured for 30k and replacement value is 35k' date=' you only get out 17k? 

then excess still needs to be paid!

I think they are ripping us off!!!!!!!!

[/quote']

 

i'm not sure how you get to 17k..

 

 

 

[Tankman]

maybe I understood your formula wrong 30/35 *20 = 17  ??

[Guest colonel]

No to sure how you hit the car.......heehee

[fandacious]

oh right...

my bike was insured for 25. replacement value was 35. repair quote was 20

 

25/35*20 = 14k