The simplest explanation is that, in addition to third party, fire and theft risks, the policy covers accidental damage caused to the policyholder’s car.Some insurers refuse to accept that damage caused by a stone bouncing up from the road is accidental.Others accept the possibility, but demand proof of how the damage occurred. It is not usually possible for the policyholder to obtain any evidence.So long as the damage is consistent with the alleged cause, this will be sufficient prima facie proof that the policyholder has a valid Custom Web Design claim.Insurers should not insist on additional proof that the incident occurred merely as a means of rejecting the claim.
One of the new motor issues which has concerned us this year is grey imports, foreign cars which have been purchased abroad, either by the consumer or by the dealer.
In some cases, the policyholder was not aware that the vehicle differed in any way from the UK model.We have taken the view that the insurer’s valuation should not be reduced because the foreign vehicle was originally purchased for less than the UK model.
The car has normally been insured for its market value and we interpret that as the value in the UK market.Only where there is clear evidence that the intention of the parties was to use the value of a different market, would this assumption be displaced.If the model has no exact UK counterpart and parts have to be obtained from abroad, then there may be a significant period before repairs can be completed.
However, where the insurer has agreed to provide a courtesy car until completion of the repairs, the fact that there is a delay in obtaining parts and that this delay is clearly beyond the insurer’s control, will not affect that obligation.