Ok, here's a heads up.. QBE wouldn't insure my bike for the actual replacement price.. instead, only for the price I paid..
Now, while this sounds about right - think about the following scenario..
" You're riding down the road, minding your own business - some clown in a cage forgets he has to turn left to get to his grandma's house - and takes you out while you're in your lane.. your bike goes skittling down the road with you after it... it's a total loss and your helmet and leathers need replacement.. "
Ok, you only paid $4500 for the bike - but the local shop says it was valued at $7000 to replace given the condition and km's and extra's ( new screen and exhaust system )..
So you go out shopping - but you've only got $4500... you now need $2500 more to buy the same bike..
You also need to replace that helmet, jacket, pants and your ruined boots..
Does this sound fair ?
Having a background in insurance, this is what we would call " Underinsurance " and is against the principles of insurance, to return the insured to the same financial position - with the same as the loss..
Now, I understand that " Over Insurance " is just as bad - i.e. buying a bomber for say $2000 then insuring for $5000 - and writing it off.. to make money on the claim.. ( which is also illegal..)
I'm not saying that I'm trying to over insure myself, just for replacement value...
Now, here's where it gets sticky...
There's a set of legal guidelines that insurers must comply with, it's called the FSR. ( Financial Services Reform Laws )
It's a set of guidelines that they MUST follow to prevent a breach and a nasty fine. ( You can't advise, unless your qualified and trained and you must follow strict guidelines )
I called to _query_ and was ADVISED that the Market value of my bike was based on $4500 - ( purchase price ) - now.. here's the hum dinger..
You cant " ADVISE " unless your suitably qualified.. and I'm guessing the girl wasn't..
Also, Market Value is determined on the day of the claim - and based on calling around to ascertain the value of the loss.
Agreed Value is a set price, and is fixed for the term of the insurance ( 12 months )..
Guys, just have a heads up at this - because I queried why there was such a descrepancy- they said " It's our policy, and we dont bend " so I replied " You've breached FSRA and Given Advice ".. I'm sure they'll be holding their arses if that call was monitored, because for a customer to complain about an FSRA breach is pretty serious..
I used the following example of " Fair Market value " - You go to a deceased estate auction, you manage to pickup a fantastic condition Nissan Patrol for $5000 - it's only 2 years old and has 10,000k's on the odo.. aparently if you call QBE - they'll only insure you for $5000.. because that's what you paid..
Even tho the car's worth $50,000.... you cant replace it for that, can you ? Is it fair to say that you'd go through the drama of a claim and being investigated ?
Might pay to read the policy wording too, aparently they won't cover track days or club events...