Unused insurance forfeited after a total-loss, is that right

[MQonNinja]

Hi all,

Sorry if it is a re-post.

Recently many KSRC members have posted up their bad experience in accidents , some are rider at fault and some are driver at fault. I hope they all alright and get back to bike soon.

I recently had a accident with no other party involed, (I dumb enough to crash the gutter) and the insurance assessed as "beyond repair" which means i get a brand new bike. (my bike is 1 month old at the time i had accident)

Today the lady from the insurance company rang me and said that as it is a total-loss, they are going to forfeit my unused insurance (only used 1 month and i paid $1330 premium with $900 excess). so i have to get myself a brand new insurance again and cannot get a refund for the unused amount.

As nowadays more and more people are riding, so there is increasing chance of getting a total-loss assessment from the insurance company (hopefully not ) maybe we would like to discuss the insurance issues.

Any comments will be appreciated.

[Strika]

Sorry mate...the Insurance Co is correct! The plicy has been paid out...therefore...you must commence a new policy!!!

[Disco]

Isn't that double dipping?And what about if he had pay by the month,would they make him continue his original payments for 11 months as well as the new ones?

[MQonNinja]

Isn't that double dipping?And what about if he had pay by the month,would they make him continue his original payments for 11 months as well as the new ones?

They said you need to pay the rest 11 moths in an once-off payment.

[hoffy]

unfortunately, you need to pay the full price of the policy to redeem the full benefit of the policy, such as being paid out etc etc.

just cause they let you pay it by the month does not mean you dont have to pay the rest before you claim

you buy a 12 months period of cover..ie, you buy protection for the whole period, you cant divvy it up

[Disco]

Is this only for a "total loss"? Obviously....

[lifeofcrimeguy]

I believe it's for any claim... I think a policy is "one claim" item. Regardless of reason or amount.

[hoffy]

Is this only for a "total loss"? Obviously....

yes, total loss..

[dave#3]

Is this only for a "total loss"? Obviously....

Yes, it's only for total loss. If the bike was repaired your insurance would continue for the remaining 11 months.


Sorry to say it MQ but they're correct in what they're saying

[Smitty]

Marty, hoffster and DavoNo3 ..are all correct

but look at it like this...you pay out the policy
you get a NEW bike...isnt that one reason for the policy in the first place???

[Johnnie5]

I believe it's for any claim... I think a policy is "one claim" item. Regardless of reason or amount.

no its only for a total loss , if its repaired the policy is still active

this is another reason why they write bikes off

op paid $1330 + $900 excess $2230

say bike was $10K

sell at auction $4K + $2230 , insurance recovered $6230 , loss $3770

repair damage $7K less $2230 , loss $4770 and the policy is still active which means say the bike gets stolen then they are out $10K plus the previous claim

plus as well, if they replace the bike new for old they prob get a wholesale price so less than a payout , there is prob other benefits such as the gst and such which are claimable as a business thing

[maraach]

Hmm as the other posters have mentioned, the policy is for the bike, its been used, hence you forfeit it.

Even are a cost of $2,200 its still a hell of a lot cheaper than repairing / replacing the bike, so i think you got a fairly good deal

[Mojo67]

Its a disappointing rip to find this out, when it seems logical that you would get pro-rata back. As it was explained to me, your policy is essentially a contract covering you from the worst possible thing, a total loss. When they pay you out their part of the contract is satisfied, and the contract ends.

[Daisy]

Not so much a contract as a bet. You're betting a year's premium that you'll lose or damage it - and they're betting the value of the bike that you won't. I'd like to meet the bookie who gives you your winnings, plus your money back.

[the_shez]

i don't understand why your comp is so cheap? who are you insured with? i'm paying more then double that!