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Title: Insurance valuation dispute

Date: 26 August 2015

Q

My son recently bought a 2 and a half year old Honda Fireblade, one owner, from a dealer.
He paid £ 9,000 for it. He thought it was a reasonable price as it had only done 100 and was one of only 5 limited edition bikes.

He insured it for £9,000 pounds. The broker did not query the value and charged an appropriate premium. The next day the bike was stolen from his place of work.

He has just received an offer for £5,000. This will not be anywhere near enough to put him back on an equivalent bike. He has a £1,000 excess on the policy which he accepts.
I have found 23 Fireblades on your website with less than 1,000 miles from £9,800 to £12,500.

Should he employ a loss assessor to recover as much money as he can?

Anon email to MCN

A


My reading of this is that the bike was stolen the day after it was purchased and as such, assuming your son has a receipt/proof of purchase amount, this is excellent evidence of the bike’s actual market value the day before the loss.

Further, you have identified a host of comparable bikes all valued way in excess of the offer from your son’s insurer. Your son doesn’t need a loss assessor. I suggest your son contacts his insurer (not broker) with the evidence he has as to value (actual price paid and comparable bike prices) and ask them to reconsider and pay him the £9,000 he paid less the £1,000 excess.

If the insurer does not respond favourably then your son can raise an official complaint with the insurer which they must investigate. If they still don’t come up to an acceptable market value figure then your son may refer the matter to the Financial Ombudsman Service (FOS) asking them to investigate on the basis of the financial loss caused to him.

Should the FOS not agree to deal with the matter then it would also be possible for your son to consider a claim against the insurer for breach of contract. Hopefully, however, stage one of the above will get this sorted out for him.

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