[matkamil]

correct me if I am wrong but I do not think the Principal of insurance say ...."........" is totally right, the sum insured whichever the lower part.

I believe the insurance company will also use the subject to average clause. I think it works like this...Lets say you insure a car for RM100,000. At the time of theft the market value is estimated at RM90,000 (how the insurance co arrive at the market value is another major thesis), then they will compensate at RM90,000, but if you only insure for RM80,000 and the market value is RM90,000 then the subject to average clause will apply, meaning they will not compensate you the whole RM80,000 but rather RM71,111 that is RM80,000 divide by RM90,000 and multiply by RM90,000....this is because you have only insured part of the vehicle, RM80,000 out of RM90,000 worth so you cannot expect to be paid in full all your insurance cover when making a claim.

Similarly if you insure that car for RM150,000 for some unknown reason, you will be paid only RM90,000 because you have over insured.

If I am wrong I stand corrected.

Regards

How do you get RM71,111 when you divide RM80,000 over RM90,000 and multiply by RM90,000? Now I am confused.

[ain206]

How do you get RM71,111 when you divide RM80,000 over RM90,000 and multiply by RM90,000? Now I am confused.

i think wht boroi meant was 80K/90K x 80K.....

[bOROi]

How do you get RM71,111 when you divide RM80,000 over RM90,000 and multiply by RM90,000? Now I am confused.

you are right...now I stand confused!!!

[matkamil]

i think wht boroi meant was 80K/90K x 80K.....

Oh IC.. now make sense. I have experience in insurance claim. never claim insurance in my life.

[ain206]

Oh IC.. now make sense. I have experience in insurance claim. never claim insurance in my life.

so to all my friend...... make sure the next time you purchase your motor insurance........ make sure the sum insured is at least 90% of the market value......... otherwise you are consider as self insured on the different and average clause will come into play.......

[GuyM]

so to all my friend...... make sure the next time you purchase your motor insurance........ make sure the sum insured is at least 90% of the market value......... otherwise you are consider as self insured on the different and average clause will come into play.......

Correct but at what value? Value of the vehicle in month of Jan or June? Btw, then u have the classic idiots of insurance agencies which sent notices to u to remind u of the expiry date of yr insurance. I recently receive one;

Expiry 1 June 09 Lancer GT
Car Mfg is 2008
Price of purchase RM115,980 incl insurance & tax
Sum insured in 2008 is RM112K
New car same model 2009 now retails at RM122k with insurance & tax
Sum recommended by UniAsia agent to be insured is RM112k
Market value as of today is approx RM95K

So tell me if it makes sense here? Sent an inquiry to UniAsia to ask for clarification but they did not answer & its been 1 mth ady. So assuming if you follow the recommend (not me of course) insured sum then 2 mths down the road vehicle stolen, then how do you argue then with insurance firm? Can owner blame the idiot agent for over-insured?

Cheers!

[bOROi]

Correct but at what value? Value of the vehicle in month of Jan or June? Btw, then u have the classic idiots of insurance agencies which sent notices to u to remind u of the expiry date of yr insurance. I recently receive one;

Expiry 1 June 09 Lancer GT
Car Mfg is 2008
Price of purchase RM115,980 incl insurance & tax
Sum insured in 2008 is RM112K
New car same model 2009 now retails at RM122k with insurance & tax
Sum recommended by UniAsia agent to be insured is RM112k
Market value as of today is approx RM95K

So tell me if it makes sense here? Sent an inquiry to UniAsia to ask for clarification but they did not answer & its been 1 mth ady. So assuming if you follow the recommend (not me of course) insured sum then 2 mths down the road vehicle stolen, then how do you argue then with insurance firm? Can owner blame the idiot agent for over-insured?

Cheers!

Usually these people when they send such reminder they will just quote the same amount that you insured the previous year. They do not want to give an opinion on what the Market Value is now, they are only selling tyhe Insurance and do not want to think for you how much to insure.....especially since how MV is arrived at is arguable, you ask 10 people you will get 10 different figures. So they just quote your previous figure, you decide on what amount to insure anyway.

Regards

[ain206]

Usually these people when they send such reminder they will just quote the same amount that you insured the previous year. They do not want to give an opinion on what the Market Value is now, they are only selling tyhe Insurance and do not want to think for you how much to insure.....especially since how MV is arrived at is arguable, you ask 10 people you will get 10 different figures. So they just quote your previous figure, you decide on what amount to insure anyway.

Regards

absolutely right........... we should stop blaming but start reading the policy wording that is given out .... understand the contents then you know where you stand. of course the value between jan and june the same year will be different... that is why the 10% variation is allowed taking into depreciation on the car value yearly.....

[darreltian]

ain206, i got my money ready...when are u free to accompany for a test drive my dear ?

[ain206]

ain206, i got my money ready...when are u free to accompany for a test drive my dear ?

darrel..... where abt and when.......... you go test drive and i jaga your money can ah.....