cycle insurance companies

[porky]

So what is covered and what isnt???

I mean if my frame snaps I take it its not covered?

But if its ridden over by accident??

Stolen granted its replaced but to how much??

Ie I was quoted R200 odd to insure my bike for 30k

Now if it stolen how much will I get paid out? The full 30k minus the excess or what???

So what is stopping you from saying the bike is stolen if your frame cracked???

They will battle to prove otherwise. Only problem is the guilty conscience I would have.

 

1)Well, it varies from insurance to insurance, you need to look at the exclusion clauses, some might cover you for (eg) metal fatigue, others wont.

 

Generally, its up to you to ensure your goods are fully insured for the full present replacement value, in other words, if you insure your bike for 30 K but replacement is 60k and it gets stolen, the insurance company will say you "underinsured" (your monthly installment was too low) and will pay out a pro rata value of the 30k - not the full 30k as many assume.

Less the excess of course.

 

Saying your bike is stolen (and its not) is fraud, there will be checks like you will have to report it stolen to the police and sign an insurance affidavit etc.

They will also want to see forcible entry / loss, (ie) your house will have to have broken locks, your car a damaged boot lid / door / window etc, most times an insurance company will NOT pay if you claim theft but can not prove forcible entry - they will claim you were NEGLIGENT (left the bike outside overnight and unlocked for eg) and that is always an exclusion. 

 

They may also cease any further cover and notify other insurers of your suspected fraudelant activities making it difficult to get further cover.

 

...........No, best dont go down that path, it only leads one way.!

 

Just remember, ALL insurance policies will require YOU take ALL reasonable care to prevent loss or damage - you cant just treat your goods with disdain simply because they are insured, some insurance companies now require you even prove servicable items ARE serviced regularly before they will pay a claim (ie) if an automatic garage door falls down on your car - the insurer may request to see that the door was serviced on an annual basis by a recognised repair person, if it wasnt, they CAN claim you were negligent in your responsibilities and they are not liable for your negligence.

 

 

[ASTANA]

The main reasons for me insuring my bikes is 1) Theft (this is SA you never know) 2) Less likely but can happen major crash in competition

 

All the other stuff they cover is a bonus for me. Fatigue on the frame will take time, factory fault will/should be sorted out with you LBS where you bought the bike.

 

Good luck ppl, Cyclesure worked well up to now

 

 

[rad006]

So what is covered and what isnt???

I mean if my frame snaps I take it its not covered?

But if its ridden over by accident??

Stolen granted its replaced but to how much??

Ie I was quoted R200 odd to insure my bike for 30k

Now if it stolen how much will I get paid out? The full 30k minus the excess or what???

So what is stopping you from saying the bike is stolen if your frame cracked???

They will battle to prove otherwise. Only problem is the guilty conscience I would have.

 

1)Well' date=' it varies from insurance to insurance, you need to look at the exclusion clauses, some might cover you for (eg) metal fatigue, others wont.

 

Generally, its up to you to ensure your goods are fully insured for the full present replacement value, in other words, if you insure your bike for 30 K but replacement is 60k and it gets stolen, the insurance company will say you "underinsured" (your monthly installment was too low) and will pay out a pro rata value of the 30k - not the full 30k as many assume.

Less the excess of course.

 

Saying your bike is stolen (and its not) is fraud, there will be checks like you will have to report it stolen to the police and sign an insurance affidavit etc.

They will also want to see forcible entry / loss, (ie) your house will have to have broken locks, your car a damaged boot lid / door / window etc, most times an insurance company will NOT pay if you claim theft but can not prove forcible entry - they will claim you were NEGLIGENT (left the bike outside overnight and unlocked for eg) and that is always an exclusion. 

 

They may also cease any further cover and notify other insurers of your suspected fraudelant activities making it difficult to get further cover.

 

...........No, best dont go down that path, it only leads one way.!

 

Just remember, ALL insurance policies will require YOU take ALL reasonable care to prevent loss or damage - you cant just treat your goods with disdain simply because they are insured, some insurance companies now require you even prove servicable items ARE serviced regularly before they will pay a claim (ie) if an automatic garage door falls down on your car - the insurer may request to see that the door was serviced on an annual basis by a recognised repair person, if it wasnt, they CAN claim you were negligent in your responsibilities and they are not liable for your negligence.

 

 

[/quote']

 

Why only pro rata?If I under insured the bike its my problem they should pay out the 30k minus the Excess. Why even less???

[AndreZA]

YOu can not expect to only pay 50% of your premium and get 100% coverage.

[shadowchaser-d]

YOu can not expect to only pay 50% of your premium and get 100% coverage.

 

I speak under correction but if my bike is insured for 30k and is valued at 60k, it is then stolen, my insurer will pay out the 30k less the premium.  If i fall and break my 20k Bontrager wheels.....they will pay out the 20k less the premium. 

[AndreZA]

YOu can not expect to only pay 50% of your premium and get 100% coverage.

 

?

 

I speak under correction but if my bike is insured for 30k and is valued at 60k' date=' it is then stolen, my insurer will pay out the 30k less the premium.? If i fall and break my 20k Bontrager wheels.....they will pay out the 20k less the premium.?

[/quote']

 

 

 

They will only pay out 50% of the replacement value because you only insured it for 50% replacement value. If you break your R20k wheels, they will only pay R10k of that.

[shadowchaser-d]

YOu can not expect to only pay 50% of your premium and get 100% coverage.

 

I speak under correction but if my bike is insured for 30k and is valued at 60k' date=' it is then stolen, my insurer will pay out the 30k less the premium.  If i fall and break my 20k Bontrager wheels.....they will pay out the 20k less the premium. 

[/quote']

They will only pay out 50% of the replacement value because you only insured it for 50% replacement value. If you break your R20k wheels, they will only pay R10k of that.

 

Well then i must be in luck.....my bike's replacement value is easily 50k, and all both my previous claims they have paid out the full amount of the crash damage, less the excess.....Never was i told that i am under insured and will therefore pay out only x amount

[AndreZA]

very lucky indeed. Why not just insure it for R1000 and pay R20 a month and expect to claim for R20 000.

[shadowchaser-d]

very lucky indeed. Why not just insure it for R1000 and pay R20 a month and expect to claim for R20 000.

 

You could do that but then you could only claim for the R1000 even if your bike is worth 50k.  You can only claim for the total value insured and you will pay a monthly premium on that.  If my 50k bike now gets stolen, i will be 20k short to replace it and i accept that "risk"

 

With house hold cover, that is where they penalise you if you are under insured. 

[Minion]

 

 

I stand to be corrected, but isn't the payout for under-insurance as follows?

 

Payout = amount claimed x (amount insured / actual replacement value)

 

So if my bike is worth R50k and I insure it for R25k, then if it is stolen and I claim R50k, they will only pay out R25k (ignoring excesses). If I break my wheels and claim R20k, they will only pay out R10k.

 

If the bike is stolen and for some reason I claim the insured amount of R25k, then they will pay out the pro rata amount of R12.5k.

 

Moral of the story: claim the full replacement amount, not the insured amount.

 

Moral number 2: If you're not prepared to cover the shortfall yourself, insure the full amount.

 

Edman2009-06-17 08:05:10

[WR 1.0]

Mampara is spot on,

 

The principle of "average" applies to most non motor claims (contents, allrisks such as bicycles, ect)

 

If you elect to insure your R50k bike for only R25k, you are only paying for 50% of the risk and the insurance company will then only pay 50% of your claim.

 

You cannot claim R50 if R25k is your maximum indemnity. If your replacement quote states R50k and you only insured for R25k, expect to get paid R12500 less excess.

[porky]

Yes, it is quite correct - Insurers mostly all apply the pro rata penalty valuation - in otherwords they will only pay a pro -rata value for the bike - if its value is 20k and you are insured for 10k, they will pay 5k - the pro rata penalty value.

 

Of course, before someone says "but I"......................?? there can occassionally be exceptions, but they will be dealt with on a one on one basis, general rule is "the pro-rata penalty valuation" - make sure you are insuring for the full value to avoid heart ache later.

 

 

[rad006]

Hold on....

1 If im insured for 30k my replacement is 30k will they pay out 30k?

2 If im insured for 30k my replacement is 60k so they will only pay out  only 15k and not the 30k even though im undervalued?

 

[WR 1.0]

option 2!

[porky]

.

 

.

 

Well then i must be in luck.....my bike's replacement value is easily 50k' date=' and all both my previous claims they have paid out the full amount of the crash damage, less the excess.....Never was i told that i am under insured and will therefore pay out only x amount

[/quote']

 

The crash damage was probably less than the insured value, and fell within the guidelines, hense its not an issue - the penalty clause applies mostly to complete loss (ie) theft or write off due to damage, or the insurers bill is HIGHER than your insured value. 

 

[porky]

Hold on....

1 If im insured for 30k my replacement is 30k will they pay out 30k?

2 If im insured for 30k my replacement is 60k so they will only pay out  only 15k and not the 30k even though im undervalued?

 

 

You are learning my friend. Count on NUMBER 2