Why a Broker is Essential at the time of Claim
One of our clients recently needed to purchase a vehicle to replace one that was involved in an accident the on the same day as it was purchased.
The Insurer denied cover on the basis that the new vehicle was not insured at the time of loss (not notified) plus it was noted that extractors were fitted which increased the speed of the vehicle and this was excluded via Underwriting Guidelines.
We successfully argued that the client was entitled to reasonable timeframe to communicate a new purchase where the policy wording supported cover (there is no proviso in explaining replacement vehicles to the consumer and the client cannot effectively communicate on a Sunday when the vehicle was purchased).
We also argued that the extractors for the vehicle were for fuel performance in towing horse floats, not for speed(picture of vehicle confirms that the vehicle is not a sports vehicle).
The relevant section of the policy reads.
If you replace your vehicle
1. If you replace your vehicle with another vehicle, your cover for the original vehicle will end
- If you replace your vehicle within one month of disposing of it, we rill provide the same cover for your vehicle for id days from the date you take possession.
2. If you wish to continue cover replacement vehicle
- You will need to contact us or your insurance adviser take out a policy within 14 days, or your cover will end.
- If we do continue the cover, we will advise you change to the premium or terms of the insurance.