Motorbike Insurance.

[John]

A colleague at work is having some fun with an insurance claim and I'm just wondering if it is par for the course.

I know nothing about motorbike insurance and have always presumed it would be the same as car.

So anyway, here's the story in brief:

Colleague fully comp gets knocked off bike
3rd party admit liability and his insurers pass it straight to the 3rd party to resolve
For simplicity, bike cost £6k to buy a month before
Payout offered of £4k (already paid) and then the bike salvage value £1.5k (not paid yet) which the 3rd party insurers will get will make up the difference as near as damn it
Something changes and 3rd party insurance tells my colleague to take the bike back (£9k estimated damage)
He refuses as he doesn't have £9k to fix it and it doesn't make sense to do that obviously
They say he will be charged for storage and disposal if he doesn't
He refuses and pursues the salvage as an uninsured loss via solicitor
Solicitor not very helpful and states if the third party doesn't want to pay out on the salvage, they don't have to
He accepted the original offer of £5.5k in total and has sent off the logbook to the DVLA to state it is scrapped as requested by the 3rd party insurance at the start
3rd party insurers state they are going to pay out the £1.5k although he's yet to receive it (but hopeful)
He's received 10 sessions of physio with no improvement
I recommended a local osteo who has done more in 1 session! I've told him to claim this back off the third party as an uninsured loss - solicitor working on that
I've advised him to take it to the insurance ombudsman if they don't pay out on the salvage and osteo treatment

So my question is - insurance is there to put you back where you were but is this normal bill of fare for bike insurance?

And where does he stand on this salvage issue? I apply car insurance logic to it and it's not his problem but they are having a laugh here it seems.

Sounds like a right palava if this is the norm.

 

[Doodle]

On the surface it sounds like the 3rd party insurers are trying to change the terms of the deal after its already in process, hoping to force him into a lesser settlement. However, it also seems like there's some bits of info missing - what exactly was the salvage deal? Was he retaining it? The fact that he sent off the V5 to the DVLA to scrap the bike suggests so, but then he should be under no obligation to do so until he had the money from 3rd party insurers in his hands.

Otherwise the salvage value is of no interest to him, that's the insurers problem - they should just be giving him a big fat cheque. This isn't the norm, and not necessarily specific to bike insurance although retention of salvage is more common for 2-wheel policies, mainly because it's easier for the common man to repair a bike than a car.

 

[Benzowner]

"3rd party admit liability and his insurers pass it straight to the 3rd party to resolve"
This line seems to say that HIS insurance are not acting on his behalf, they should be doing all the work necessary not him.

 

[rf065]

Sounds like a right palava if this is the norm.

There are solicitors who specialise in m/cycle claims advertised in the bike mags, lots of stories like this where solictors have no experience with bikes settling for stupidly low amounts.

 

[Teego]

Three claims in my family's experience, one bike and one car. In both cases 3rd party admitted liability.
In one case 3rd party changed his story.
In another case passenger suffered neck injury needing extended physio.
In all cases our insurers handled evrything from beginning to end to get the right outcome at no cost to us for lawyers or physio.
Your pal needs to get his insurers to pick up the ball and start running with it.

 

[Oldbrook]

I have just had a claim on my car and my insurance, fully comp, paid for all the damage back in July 18 and have just rang me to say the 3rd party insurance has just paid them in full. I did not have to deal with 3rd party at all. Dave

 

[190]

Only ever had one accident on a bike and the insurance claim was very hard work but that was back in the early 70's and I was only covered 3rd Party. A black cab did a U turn in front of me which was common in those days even on busy roads. Being professional drivers they could do no wrong as far as the insurance company was concerned.

 

[John]

OK - I thought there might be some weird sht with bike insurance but if it is the same as car then it is straightforward.

It sounds like his insurers have washed their hands of it but he needs to re-engage them.

As above, the third party have stated they will now pay the £1.5k but with all the messing around, I am not sure if they will or not - because each person he speaks to says something different.

I guess it's a case of see if they do and give them a deadline.

His insurers have cancelled the policy. This sounds a bit odd to me but I can't see how they can take your premium and wriggle out of doing anything when things go wrong.

Sounds like they are taking the piss and trying it on.

On the surface it sounds like the 3rd party insurers are trying to change the terms of the deal after its already in process, hoping to force him into a lesser settlement. However, it also seems like there's some bits of info missing - what exactly was the salvage deal? Was he retaining it? The fact that he sent off the V5 to the DVLA to scrap the bike suggests so, but then he should be under no obligation to do so until he had the money from 3rd party insurers in his hands.

Otherwise the salvage value is of no interest to him, that's the insurers problem - they should just be giving him a big fat cheque. This isn't the norm, and not necessarily specific to bike insurance although retention of salvage is more common for 2-wheel policies, mainly because it's easier for the common man to repair a bike than a car.

The second paragraph applies here. He has no interest in the salvage deal - this was the wording being quoted to him. It was literally worded as "they will pay the £4k and they will sell the salvage for £1.5k and send on that" so he ends up with £5.5k.

 

[Doodle]

That's a bit naughty. My understanding is that they can do one or the other, but not both. If they're selling the salvage, that's their problem and they can pay out in full up front. Otherwise you can sell the salvage, but if there's any shortfall between their quote and market rates (Copart et al) then they'll have to cough up the difference. If the market pays more, you're quids in.
They're trying to have their cake and eat it, making life as difficult for your friend as possible to dissuade him from pursuing them to the limits of liability - one for the ombudsman maybe.

His insurers cancelling the policy in the event of a total loss is one of the tricks of the trade, it's pretty shady but as yet there's no legislation against it. I suspect I know who he's insured with. The pro-rated value of the lost policy is something he can attempt to recover as an uninsured loss though.

All in all, it's a pretty shabby situation from both insurers, no wonder their reputation with the general public is so very poor.

 

[John]

That's a bit naughty. My understanding is that they can do one or the other, but not both. If they're selling the salvage, that's their problem and they can pay out in full up front. Otherwise you can sell the salvage, but if there's any shortfall between their quote and market rates (Copart et al) then they'll have to cough up the difference. If the market pays more, you're quids in.
They're trying to have their cake and eat it, making life as difficult for your friend as possible to dissuade him from pursuing them to the limits of liability - one for the ombudsman maybe.

His insurers cancelling the policy in the event of a total loss is one of the tricks of the trade, it's pretty shady but as yet there's no legislation against it. I suspect I know who he's insured with. The pro-rated value of the lost policy is something he can attempt to recover as an uninsured loss though.

All in all, it's a pretty shabby situation from both insurers, no wonder their reputation with the general public is so very poor.

The company is somewhere in between "LBD" or "NDF".

I will pass this thread on.

Thanks folks.

 

[davemfox]

Yes he's being done by his own insurance company.

I'd advise him to go and seek a bike specific solicitor - loads advertise in MCN and the like.

Dave

 

[Doodle]

The company is somewhere in between "LBD" or "NDF".

Exactly who I thought it would be. They're the biggest shysters in the industry, to the point where even underwriters won't deal with them anymore.

 

[Rayny]

He needs to ask the third party's insurer why they have changed their mind. - Has some new information come to light since the claim was registered ?

 

[John]

He already knows... they changed their mind because they stated the original buyer they had lined up for the salvage fell through.

 

[Doodle]

I would certainly be using the phrase "Oh dear, that is a problem. But it's not my problem".

 

[John]

Yeah he already told them that. I believe now the V5 has come back from the salvage place and it will be sent to these jokers.

So it seems like it will resolve itself.