Insurance Payout - extracting the urine?

[AndyCh]

I had my bike pinched in September last year and called the insurance company about the claim, and I am still talkint to them about the claim 4 months later.

My bike was a 2010 Cannondale Synapse flat bar 105. I paid 999 for it, plus accessories (shimano dual spd pedals, Abus d-lock, bike cover etc) and ran through all of this with the company my insurance company work with, Wheelies Direct.

I need a bike for work, and so have bought bike to commute on, and as such, I don't want my bike replacing, so want a cash settlement.

The insurance company are saying that Wheelies can source a like for like bike for 20% less than the retail price of my bike, so any cash settlement will be subject to a 20% discount (plus excess). I am arguing this, saying that the fact that Wheelies can source the bike is irrelevant to me, as I had to get another bike to get to work during the last 4 months. If they'd offered me a replacment bike in October I'd have taken it.

They are saying there is nothing they can do, and that the cash offer will be after the 20% discount, but I don't see how in this situation they should apply that, given it has taken 4 months to get this far. Yes, they want to reduce their costs, which is right as premiums continue to increase, but why should I suffer this loss when I couldn't take advantage of any discount Wheelies could offer?

Is this reasonable? Comments welcome.

Cheers, Andy

 

[Beebo]

This is a tricky one.

What does your contract say? I haven't seen your contract but I suspect that the Insurer has the right to either repair, replace or offer a cash settlement, at THEIR discretion, not yours. So the Insurer can choose how they wish to indemnify you.

If they want to replace the bike then they can, but make sure that this is an exact like for like replacement, not just the nearest equivanlent. If they cant replace it like for like you have a stronger position.

Try to negotiate a better cash settlement if possible, but if you opt for cash you will have to take a discount.

 

[Norm]

IIRC, a few insurance companies have tried this one with varying degrees of success and it depends, as Beebo says, on the exact wording of the contract.

However, if they have offered a like-for-like replacement, why do you care who sourced it and what price they paid?

 

[yello]

I suspect that the Insurer has the right to either repair, replace or offer a cash settlement, at THEIR discretion, not yours.

I'd reckon the same. Did you explain the situation at the time? Perhaps you could have negotiated then but I fear now is too late. Do I think it's wrong? Yes, I do. What I think counts for nothing though!

 

[AndyCh]

I don't want another bike as I ended up having to buy one myself because it was taking them so long to sort it all out (and still is). I would have loved a like-for-like, but shortly after the time of the theft, not still to be discussing it now, when I have been using a new bike for a few months.

I'll check my policy wording tonight, but it feels like they are just weasling their way out of their obligations, which should have been sorted by now.

 

[Norm]

I don't want another bike as I ended up having to buy one myself because it was taking them so long to sort it all out (and still is).

Ah, sorry you did say that in your OP but I missed it.

It'll all be down to the policy, then. They will have a complaints system, which you should initiate as soon as possible. There should be clear details how to do so in their literature and on their website. If that process fails, then you've got the Insurance Ombudsman. They should have a clear link to the IO's process as well.

However, this is why I don't buy insurance on the basis of the lowest quote.

 

[AndyCh]

I've been with the company for as long as I can remember, so not buying insurance on the lowest quote basis, and in fact pay a very healthy premium (read expensive) to insure my bike on my home contents insurance.

I have already initiated a complaint and someone will call in the next 24-48 hours, which will give me time to read my policy.

 

[fatblokish]

There may be a clause in your contract requiring the insured to minimise losses in the event of a claim (e.g. putting up tarpauling over a leaky roof etc). You could argue that you have done this, obviating any additional costs that might otherwise have been included in your claim (taxis, bus fares etc).

 

[Norm]

Sounds like you've got it sorted Andy.

I've been with the company for as long as I can remember, so not buying insurance on the lowest quote basis, and in fact pay a very healthy premium (read expensive) to insure my bike on my home contents insurance.

I didn't mean to suggest otherwise. However, I had a 3-day old bike nicked in 2010 (before I'd got round to putting it on my poilicy) and the insurers paid out and even asked if I needed to claim for any accessories like lights that were taken at the same time. They initially said that they would replace the bike but I said I had already done so, and I had the cheque within about 2 weeks of the theft.

 

[cloggsy]

I'd take the bike and sell it as brand new of eBay for as much as you can get...

 

[Norm]

is it worth it?

Yes, I think it cost about £30 to add £3k worth of bikes to the household policy and the only condition is that it's locked (without specification) to a solid object when away from home. Which I would do anyway.

 

[AndyCh]

Hurrah, my complaint to the insurance company has resulted in a full payout (less £50 excess of course) and there were no further discussions about lopping 20% off the settlement. Shame it is 4 months after the event, but a fair payout is all I wanted.

 

[fossyant]

Good result. 4 months for a payout is unacceptable though. Move company on renewal.

 

[Jezston]

Good result. 4 months for a payout is unacceptable though. Move company on renewal.

Quite - when I had my bike nicked just over a year ago I had a new one within two weeks.

Sadly the same insurer (my bank) won't insure me any more because I have a flatmate.

 

[MissTillyFlop]

It depends - is there any depreciation value taken from the payout?

They have taken an unreasonable amount of time to replace the bike, and have failed to give you an alternative mode of transport.

Maybe instead you should charge them the cost of a travelcard or a hire car for the past 4 months?