insurance blues

[FanieFiets]

 

"Insurance"is the oldest money making racket in the book. You always lose  with insurance.

 

and with medical aids etc?  Not very intelligent comment to make.

 

The insurance makes a profit, duh.  But lots of peoples lives and businesses have been saved because that had insurance.

 

Who do you think lose if your car get written off within the first year?

 

[MintSauce]

 

Thats right. You are underinsured by x% so they will pay out 100-x%. Why should they pay more?

 

 

Please answer clearly....does '100' = insured value or replacement value?

 

And I never said I expected them to pay more. Read my question again.

 

How will they calculate my pay-out....?

 

Replacement cost = 80000

Insured value = 45000

 

Insured value is 56% of replacement value hence a payout of

 

45000 x 56% =  R 25200

 

OR

 

80000 x 56% =  R 44800

 

 

 

 

[NotSoBigBen]

Geez Mint's looks like you gonna have to draw pictures this morning .....

[MintSauce]

 

 

 

The calculation for under insrance is as follows:

 

claim x sum insured / total value of bike

 

If you insure an R80000.00 bike for R40000.00 - you must only expect half your claim to be paid.  Remember you are only paying HALF the premium you should be.

 

 

 

What if I paid 40k for the bike and only claim for the R40k....?

 

I'm not paying 'half' the premium then am I...? I'm paying the full premium for the 40k I have the bike insured for so i expect to get 40k less excess

 

 

 

MintSauce2009-03-03 03:54:07

[MintSauce]

 

Geez Mint's looks like you gonna have to draw pictures this morning .....

 

 

 

 

 

 

 

[AndreZA]

 

 

 

What if I paid 40k for the bike and only claim for the R40k....?I'm not paying 'half' the premium then am I...? I'm paying the full premium for the 40k I have the bike insured for so i expect to get 40k less excess

 

 

 

I don't think they give a hoot what you payed for it. They will put it back in the condition it was before the incident. And seeing that you can not buy second hand and pirate spares like in the car industry, they will have to use new parts. And whatever the price of the new parts are will determine if you are under or over insured.

 

 

 

..

[FanieFiets]

 

Thats right. You are underinsured by x% so they will pay out 100-x%. Why should they pay more?

 

 

Please answer clearly....does '100' = insured value or replacement value?

 

And I never said I expected them to pay more. Read my question again.

 

How will they calculate my pay-out....?

 

Replacement cost = 80000

Insured value = 45000

 

Insured value is 56% of replacement value hence a payout of

 

45000 x 56% =  R 25200

 

OR

80000 x 56% =  R 44800

 

 

 

[BendeBeer]

like i said - i have no real gripe with the % payout.

i'm peeved that a month later i still havent been paid

 

I've sent out my agreement of loss on an insurance claim to the assessors more than a month ago now - every time I phone its like "we'll check the system" - unacceptable

BendeBeer2009-03-03 04:17:33

[Dustbin Dog]

My personal opinion if you take the monthly premium,  basic excess, additional excess for wheels plus reduction in payment if you happen to be under insured and the fact that my bicycles are covered for theft on my property under household contents,  I would rather take the initial risk and set aside those monies plus extra in a 32 day hold account.  Initially short term insurance looks OK but when the day arrives that you have to claim the insurer finds all the reasons under the sun to pay out as little as possible.  I have been cycling for 5 years and have 5 bikes in my houshold and crashed one recently.  Replacement value R13000.00.  I replaced it with a smile in one week with upgrade at R19000.00.  No insurance assessors trying to see how little they can get away with.

sandstone2009-03-03 05:46:44

[CaptainDura]

Fandacious,  is it not true that when you crash in a ppa race, you can actually claim from the ppa as they take out insurance especially for this.

 

One insurance company informed me that is why they dont cover in race accidents as the race organisers normally have insurance to cover the accidents and one should claim from them.

 

maybe it is worth investigating ?

 

 

[Sammajoor]

Have had good service from Cyclesure....  Fred has approved a claim between me leaving the offices in JHB and driving to Pretoria

 

and the two tannies in the office are hot too

 

[Jules]

My personal opinion if you take the monthly premium' date='? basic excess, additional excess for wheels plus reduction in payment if you happen to be under insured and the fact that my bicycles are covered for theft on my property under household contents,? I would rather take the initial risk and set aside those?monies plus extra?in a?32 day hold account.? Initially short term insurance looks OK but when the day arrives that you have to claim the insurer finds all the reasons under the sun to pay out as little as possible.? I?have been cycling for 5 years and have 5 bikes in my houshold?and crashed one recently.? Replacement value R13000.00.? I replaced it with a with a smile in one week with upgrade at R19000.00.? No insurance assessors trying to see how little they can get away with.

[/quote']

 

 

 

 

 

[Minion]

 

 

Please answer clearly....does '100' = insured value or replacement value?

 

On a Pedalcare policy, the 100% is essentially the value to replace all the insured items with new parts.

 

Payout = (Total sum insured) / (Actual total value) x (Amount claimed)

 

In your scenario above:

 

Payout = 45,000 / 80,000 x 80,000 = R45,000

 

In Fandacious' case:

 

Payout = 25,000 / 35,000 x 20,000 = R14,000+-

Edman2009-03-03 06:18:13

[Tankman]

Fandacious' date='  is it not true that when you crash in a ppa race, you can actually claim from the ppa as they take out insurance especially for this.

 

One insurance company informed me that is why they dont cover in race accidents as the race organisers normally have insurance to cover the accidents and one should claim from them.

 

maybe it is worth investigating ?

 

 

[/quote']

 

Not sure about that.  As far as I can remember (on the CSA license app) you can claim MEDICAL expenses up to R700 or something stupid like that. 

 

Disclamers at races nomaly state you enter at own risk bla bla bla

[40Something]

I've tried to get my other half in on this discussion as I think many cyclists would benefit from his experience with bicycle insurance.

 

However you think your claim is going to settled - be prepared for disappointment. 

 

In his case we are talking about a R49000 bike, where the frame, saddle and 1 wheel was destroyed in a cycle race. The bike was 5 months old.

 

Firstly the assessor took so long to put in his report that the only available frame in his size got sold in the meantime. The supplier has since pulled out of the country, so by the time the insurer got their ducks sorted, no frame was available locally. They were not prepared to import a frame, but then were only prepared to pay out on the price quoted for the frame since sold to someone else.

 

The damaged wheel was rebuilt. After much haggling they paid out the difference between the quoted price and the price originally paid for the frame (which was more). They did not pay for the rebuild of undamaged components onto another frame.

 

The only way we would have benefitted from insurance was if the entire bike was detroyed beyond repair or stolen.

 

And for good measure - this claim took 9/10 weeks to be settled.

 

In contrast Discovery paid for my husbands entire hospitalisation bill of R130 000 (from the accident that caused the damage to the bike) no questions asked.

 

Fortunately, my husband is still recovering from the crash, so he hasn't really missed his rather nice new carbon bike, which we now cannot really afford to replace to its original stature.

 

 

[40Something]

Fandacious' date='  is it not true that when you crash in a ppa race, you can actually claim from the ppa as they take out insurance especially for this.

 

One insurance company informed me that is why they dont cover in race accidents as the race organisers normally have insurance to cover the accidents and one should claim from them.

 

maybe it is worth investigating ?

 

 

[/quote']

 

Not sure about that.  As far as I can remember (on the CSA license app) you can claim MEDICAL expenses up to R700 or something stupid like that. 

 

Disclamers at races nomaly state you enter at own risk bla bla bla

 

Definately cannot claim from PPA. There is some intrinsic indemnity somewhere. Only possible recourse is if you can proove negligence on their part - and thats going to cost a lot more money - rather spend it on the bike