[Eden]

Taikoh,

Contrary to what you say Insurance people will discuss the issue with the
public.

Possibly you never bother to read and understand you policy wording. In
the event of a theft or total loss to vehicles, Insurance company will pay
you the Market Value of your car. It is not true that they pay you 85% or
70% or what ever percentage they deem fit for your car. If your Insurer do
not pay you the market value of the car go and make a complaint. What
makes public perception that Insurance company only pays certain
percentage of the market valu could be the dispute of the actual market
valu of the car.

At the same time the decision to insure your car less than the market value
could be the reason why the insurance company pay you less than the market
value. It is clearly stated in the policy that you have to insure based on
the market value, if you insure less than that you are considered to be
your own insurer for the different.

For easier understanding : If you car market valu is RM100K and you decide
to insure it for RM80K. In the event of an accident the Insurance company
will only pay you 80% of the repair cost. You are to bear the difference
of 20%.

However in the event of total loss (stolen or not economical to be
repaired) you will still be paid RM80K i.e. the insured value of yor car.

The maximum payable under your insurance policy is the Sum Insured of the
car subject to the market value. If you Sum Insured is more than the
market value the insurer will pay you the market value.

Hopes the above help.

To ipingen, hopefully you will be able to recover your car.

[Taikoh]

Eden,
"If your Sum Insured is more than the market value the insurer will pay
you the market value."
My issue will then be why does the insurance company accepts the proposals
of higher insured value meaning above market value if that is the case.
I believe I have over insured my car due to some f__king greedy insurance
salesman all out to maximize his commision!

[thosethere]

Eden, Just wonder in the case of accident and it is a total loss, the
insurance company will pay the insured amt or market value whichever is
lower right?

the question is, who will hv ownership of the scrapped vehicle? say if my
car is 100k, and i insure only 10k, can the insurance company declare
total loss, scrap my car, pay me 10k and take possession of whatever left
of my car?

[Taikoh]

Eden,
Sorry to be bothersome but you do seem to be from the insurance business
and you do talk like a lawyer anyway , so another question.
Obviously the loss adjuster decides the market value of a writen off car
during a claim, so on what basis is that based on.
If he base that value on some official list why can't the public insure
their cars with that list to avoid over or under insuring to be fair?

[Eden]

Sorry for the late reply I did not acces the forum since last friday:

Here are my answer:
------------------------------------------------
Q
"If your Sum Insured is more than the market value the insurer will pay
you the market value."
My issue will then be why does the insurance company accepts the proposals
of higher insured value meaning above market value if that is the case. I
believe I have over insured my car due to some f__king greedy insurance
salesman all out to maximize his commision!
------------------------------------------------
Answer:
Taikoh,
Insurance Company is in the Business of Insurance not Selling cars. If you
ask me the market value of your car (unless you drive the same old car as
I drive ) I wont know what’s the value of your car. So do Insurance
people. They wont know what’s the value of your car. You will have to
advise them based on the Insurance principle of Utmost Good Faith i.e. you
must insure the true/actual market value of your car and not the value you
put to the car.

No comment on the f**king greedy insurance salesman. I guess greedy people
exist in all industry. And I don’t go through Insurance Agent for my car
insurance .

----------------------------------------------------
Q: by thosethere

Eden, Just wonder in the case of accident and it is a total loss, the
insurance company will pay the insured amt or market value whichever is
lower right?

the question is, who will hv ownership of the scrapped vehicle? say if my
car is 100k, and i insure only 10k, can the insurance company declare
total loss, scrap my car, pay me 10k and take possession of whatever left
of my car?

Answer: Thosethere,

That’s a very good and very difficult question to answer here. However,
realistically would you find a situation where the vehicle is grossly
under insured? I cant find the section about the wreck, but normally that
is what happen. After the payment of total loss claim, the sreck will
belong to the Insurance Company. However, in your particular example, it
is titally different situation.
--------------------------------------------

Q by Taikoh
Eden,
Sorry to be bothersome but you do seem to be from the insurance business
and you do talk like a lawyer anyway , so another question. Obviously the
loss adjuster decides the market value of a writen off car during a claim,
so on what basis is that based on. If he base that value on some official
list why can't the public insure their cars with that list to avoid over
or under insuring to be fair?

Answer:
Taikoh, I am not a Lawyer (Possibly a lil bit loyar buruk lah…. ). Here is
the section in relations to determination of market value of car:

Section A – Damage to your Car
Subsection -2. Basis of Settlement
(a) We will at Our option
(i) pay the cost of repairs to Your Vehicle, or
(ii) pay in cash the amount of the loss or damage to Your Vehicle, or
(iii) reinstate or replace Your Vehicle.
(b) The maximum amount We will pay is the market value of Your Vehicle
at the time of the loss or the sum insured in the Policy whichever is the
lower figure.
© If Your Vehicle shall at the time of happening of any loss or
damage (be it partial/total) be insured for a sum less than its market
value then, You shall be considered as being Your own insurer for the
difference and shall bear the rateable proportion of the loss accordingly.
Provided always that this shall not apply unless the market value at the
time of the loss exceeds the insured value by 10%.
(d) The market value of Your Vehicle would be determined in the event
of a dispute by the Head Office of the Franchise-holder and this value
would be equal to the cost of purchasing a replacement vehicle of the same
make, model and age of Your Vehicle at the time of loss.
(e) In the event no Franchise-holder is available for the make of Your
Vehicle, the market value of the vehicle would be determined by a Loss
Adjuster licensed under the Insurance Act, 1996 and itis just1£­
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[Taikoh]

OK , you are my favourite insurance guy and the only insurance guy I
like! Take up law laa wei, you'll do good as a lawyer.

[Eden]

If I become a Lawyer whos gonna help you with your insurance question???

[Taikoh]

Hah...simple lah....do what lawyers do mah...start charging me for every
question asked and I will stop asking veli fast.

[HIDcivic]

my friend bought an Ev0 for 130k, insured it for 145k.... 6 months down
the road, accident n totalled the car... the insurance paid him back the
amount of 130k(90%) of the insured amt... not bad huh..

[Taikoh]

HIDcivic,
It would even be better if your friend insured his car for RM130k and got
back RM130K saving a couple of hundred RM in premiums.
Like Eden wrote those insurance company only pay market price doesn't
matter if your friend has insured his car for RM200k they will still pay
RM130k.