My son bought a 2013 Fireblade from a dealer. He paid £9000 for it. He thought it was a reasonable price as it had only done 100 miles and was one of only five limited-edition bikes. He insured it for £9000. The broker did not query the value and charged an appropriate premium. The next day the bike was stolen from his work.
He has just received an offer for £5000; this will not be anywhere near enough to put him back on an equivalent bike. He has a £1000 excess on the policy which he accepts. I have found 23 Fireblades for sale with less than 1000 miles from £9800 to £12,500. Should he employ a loss assessor to recover as much money as he can?
Answered by Andrew Campbell, Solicitor and author of the MCN Law column.
My reading of this is that the bike was stolen the day after it was purchased and as such, assuming your son has proof of the purchase amount, this is excellent evidence of the bike’s actual market value.
Your son doesn’t need a loss assessor. I suggest he contacts his insurer (not broker) with the evidence he has as to value (price paid and comparable prices) and ask them to reconsider and pay him the £9000 he paid, less the excess.
If the insurer does not respond favourably then your son can raise an official complaint with the insurer, which they must investigate. Failing that, your son may refer the matter to the Financial Ombudsman Service (FOS) asking them to investigate.
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.
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