Sum insured

[Quikflyer]

hey guys, wanna pick ur brains a bit...first timer heheanyway, insurance's up for renewal, and i got 2 different quotes, one insurance gives a lower sum insured, the other a higher sum insured. How to determine which is correct? Should I go for a lower sum, or higher sum? Does it make any differences?thanks loads

 

[B33mEr]

Go for d real market value of your car ... cos dat is wat d insurance company will pay you regardless d sum insured ... sifu's pls correct me if i am wrong

 

[hamann18]

hi...
Only alianz will pay u up to ur sum insured if u insured ur car according to their mkt value. That is call agreed mkt value. PM me as I'm their agent.

TQ

 

[nahanella]

market value

no worries buddy..u can renew wt many insurance company and according to PIAM guidelines insurance company must pay compensation according to market value on accident or stolen date... im in this line for more than 6 years... if interested kindly contact me at 013 354 0000.... tq and hoping can do business wt u...

 

[devilsadvocate]

Bro Quickflyer,

Motor Insurance is Tariff - i,e the premiums quoted by any one Insurer should be the same. (though Takaful companies need not follow Tariff there is a Gentlemens understanding that they will). However Insurers have some discretion on Policy Excess, Loading etc.

With regards to the Sum Insured - you must understand that the basic principle of Insurance is that of Indemnity. Now in case you have not purchased Insurance - you lost your car - how much would it cost to purchase a car similar to the one you lost i.e in terms of model/age etc. Well the Insurer is technically supposed to pay you that amout - i,e indemnify you of your loss. So the Insurer is obligated to pay you the market value of the car at the time of loss - usually Loss Adjusters are hired - who in turn would write to the Franchisor of the said m/car for a market value report.

Some like DaiXXXXX and NiXXXX XX and ToXXXX charge a fee for the same. Some like ProXXX and NaXX could not be bothered and would never reply. My exeperience during my tenure as an adjuster - the two leading German marques - issue this at no cost and pretty fast.

So the Insurer would then offer to settle the claim based on the market value report plus adjusters report. If the car is under Insured by more tha 10% then avarage clause may apply.

Nonetheless - within the motor tariff there is a provision for what is known as Agreed Value clause - this is the Insurer agrees to the value that you have proposed - so lets say you buy a spanking new 7 series for MYR 800K plus, come year end you loose the car - though due to the depreciation of the Euro - ecomonic slow down - etc/etc - the actual market value us MYR 700K - the Insurer is still bound to pay you MYR 800K.

Again generally most Insurers company are the same - they are full of people who do not understand what they are doing -hence many people have bad experience with them. So to me save for a few really-really rotten apples - the rest are about average and as long as you avoid a few - it makes no difference who you Insurer with.

Hope this helps.

Cheers mate.

 

[initialM]

How are goin know the "few" so that can be avoided.:listen:

 

[climenta]

hi...
Only alianz will pay u up to ur sum insured if u insured ur car according to their mkt value. That is call agreed mkt value. PM me as I'm their agent.

TQ

Not sure if only Allianz is offering this kind of package, but it is termed as fixed value policy. If your ride is insured for N amount, the payout upon justified loss will be N amount without much dispute. I went for this fixed value policy, sounds like a better deal on money spent. PM me if anyone needs more information:top:

 

[astroboy]

Those insurance companies that offer "agreed value" clause offer very shitty/ridiculous value for you car... just to quote an example, a 2007 E90 320i bought for RM220k brand new in 2007, is only being offered RM160k agreed value during 2008 renewal.

To me, the only difference "agreed value" clause offered is you get that "agreed value" the moment claim arises and can avoid insurance company using excuses to delay your claim. If don't have such clause, the evaluation process can take up some time (normal excuse).

To answer Quikflyer's question, just flip the classified section to look for your model and year, take the selling price and knock off 5k to 10k to arise at the realistic possible transaction price. That will be the sum you want to insure your car.

Getting the right sales agent that's going to service u is more important than choosing the right insurance company, since premium is regulated, it'll be the same price which ever company u buy from. So personalised service is something extra... that's my philosophy.

 

[climenta]

Those insurance companies that offer "agreed value" clause offer very shitty/ridiculous value for you car... just to quote an example, a 2007 E90 320i bought for RM220k brand new in 2007, is only being offered RM160k agreed value during 2008 renewal.

To me, the only difference "agreed value" clause offered is you get that "agreed value" the moment claim arises and can avoid insurance company using excuses to delay your claim. If don't have such clause, the evaluation process can take up some time (normal excuse).

Actually, the shitty / ridiculous value is subject to model, year, etc. The conventional motor insurance policy will depend on your requirements but the payout will only be against the real time market value X 60% to 70%. For fixed value, a 1995 e36 325 is valued at RM39k.

Now tell me if that is not a good deal

 

[astroboy]

.. For fixed value, a 1995 e36 325 is valued at RM39k.

Now tell me if that is not a good deal

wow! U got that for "agreed value"? very good deal compared to mine.. :motz:

I sold my 1995 Perdana in 2007 for only RM19k.. your car value is very good!! :top:

 

[climenta]

wow! U got that for "agreed value"? very good deal compared to mine.. :motz:

I sold my 1995 Perdana in 2007 for only RM19k.. your car value is very good!! :top:

Yeah dude, bloody good. The kind gesture courtesy of our very black brader