insured value?

escapin · 16-03-2009, 06:43 PM

ok my brother has a sss pulsar insured for 5k prangs it his fault. any way long story the insurance company wants to write the car off and only pay him 2k.
now they are saying that if it wasnt his fault he would get the full amount.

does this seem right to any of u?

id assume that it wouldnt matter if ur at fault or not u get the amount its insured for payed out.

its agreed value and excess is not taken into account with that 2k figure

FrogInASock · 16-03-2009, 07:29 PM

ALWAYS read the fine print. Then take the insurance contract and offer of settlement to the NRMA/RAA etc in your state.

Of course, if the insurance is WITH them, take it to a solicitor.

mustang70 · 16-03-2009, 07:31 PM

ha? i'm no expert but isnt that what insurance is for, they pay out even if your fault.

scream and shout, maybe they're trying to screw him. its their job to screw him and they're good at it.

scott

Alanbxr8 · 16-03-2009, 07:43 PM

Quote:

Originally Posted by mustang70

ha? i'm no expert but isnt that what insurance is for, they pay out even if your faultscott

Exactly the point, that is what is for, as against third party property insurance.

Name the insurance company

escapin · 16-03-2009, 08:17 PM

its the biggest one in nsw

Coogs289 · 16-03-2009, 08:21 PM

and the biggest insurance company in NSW is... lol

GT-E · 16-03-2009, 08:24 PM

Did he have a $3k excess ?
If so this would explain it.

escapin · 16-03-2009, 09:18 PM

no his excess was 1k and this amount had nothing to do with it.

it seems to be a bit of what i think to be scare mungering possibly i mean if they get the 1k excess off him and then give him 2k they are only out of pocket 1k. plus the car which isnt badly damaged, rear quarter bumper thats all.

Yaw · 17-03-2009, 12:01 AM

I would be thinking there is something misleading in what or we we are not hearing the full story.
For instance I have seen a lot of people (plucking examples from the air here) insure their car as the incorrect model, eg saying its a 1997 model when they take the policy out and then when its in an accident and assessed its found to be like a 1995 model. In those cases the higher amount its insured for is not what they get paid out, instead they get what the "real" make and model is worth. And if you really want to push the point of "agreed" value you would be effectivley not telling the truth when the policy was incepted which means the insurer would have every right in the world to cancel the policy from the inception date meaning the policy never exisited and just refund the years premium.

The other possibility that comes to mind is maybe they are reducing the payout figure less the rest of the remaining monthly installments, which once again is within thier rights.

LTDHO · 17-03-2009, 08:53 AM

A) There is no fine print.

B) Are you sure it's agreed value not market value or Sum Insured?

C) The insurer will explain why they payout is $2000, they usually send a letter to explain it. Try reading the letter

escapin · 17-03-2009, 10:03 AM

yeah totally agree its my younger brother who i dont live with but will be seeing on the weekend, i told him to get the insurance guy to put it in writing first that way u have every thing on paper and can take it further if needed.

any way i just thougth that it was weird that they would pay the agreed value if it wasnt his fault but because it was the 2 k was the amount, thats what i want him to get in writing.

cheers

Nickxb · 17-03-2009, 10:56 AM

Ask them to do an independent valuation if you have a market value policy. If the valuation comes back more than their offer, it gives you a point of argument

**Sorted** · 17-03-2009, 01:52 PM

It may be insured for $5,000 or market value whichever is the lesser.

Is he paying monthly?

I think you have some wrong information somewhere - Get the facts first - So many variables - bad insurance company blah blah..............lol

escapin · 17-03-2009, 02:28 PM

yeah totally many variables, thats why i only was asking for opionins on if it seemed right there being a difference between at fault and not at fault, thats what the main question is.

he pays it in full once a year

Kieron · 17-03-2009, 02:57 PM

Maybe it's actually market value and the cars worth 3K, take the 1K and that gives you 2. If it wasn't his fault, the other persons insurance company ultimate pays so his insurance company isn't out of pocket.

Yaw · 17-03-2009, 09:37 PM

Quote:

Originally Posted by Kieron

Maybe it's actually market value and the cars worth 3K, take the 1K and that gives you 2. If it wasn't his fault, the other persons insurance company ultimate pays so his insurance company isn't out of pocket.

Your insurance company can only recover what is a fair and reasonable loss and need to be able to show proof of loss.
For instance if you have an agreed value of $5000 and the cars market value is $3000, your insurance company can only recover $3000 as it is not the other companies fault it was overinsured.

bok1 · 18-03-2009, 08:11 AM

so if my car which is insured for an agreed value of $50000 and it gets written off i might only get a payment of market value?which will only be $33000 - $36000/
phil

LTDHO · 18-03-2009, 09:06 AM

Quote:

Originally Posted by bok1

so if my car which is insured for an agreed value of $50000 and it gets written off i might only get a payment of market value?which will only be $33000 - $36000/
phil

Phil, if it is agreed, then that is the amount you get, based on your example, you would get $50,000 less deductions (ie excess)
If you have a Sum Insured policy, you will receive the market value of your vehicle up to the Sum Insured.
Market value is naturally just that, market value.
Third party policies, they are similar to Sum insured.