OneCover Insurance claim Depreciation of Goods

[Shanye2233]

I lodge a claim with my recent travels to the gold coast with my sony video camera. It was within the covered period and i got a response from allianz insurance requesting more information , which was a receipt of the video camera i purchased and anything i have still remaining of the video camera like a box , cover or charger. I had them all still the original box and the receipt inside the box so i emailed it away.

Now i purchased the camera in late 2010 for $1999 from david jones. I waited for a response which came today . My claim had been approved and its in the processing payment stage of $942. I was concerned i purhcased the video camera for $1999 yet only receiving $942 so i asked the question and was meet with the Depreciation term.

Having never claimed travel insurance in the past is this procedure the norm ? I insisted that i should be entitled to the replacement value of the video camera and again was told about Depreciation and when i recieve the letter outlining the decision i can have it reviewed.

Is this my only option ? Are they permitted to give an estimated value of my item or is it a replacement costs .

Sort of confused with this one.

Thank You ,
Shane.

 

[oz_mark]

Depreciation is normal for travel inusrance policies, they are not normally new for old replacement policies, but read your PDS. Normally, the best you can hope for is to review the amount of depreciation that they have applied to the item.

 

[Shanye2233]

Well thanks for that . The item is about a year and a half old so nearly $2k and a return of less than half its not what I was expecting .

 

[pat25d]

Well how much is it actually worth?

I can't see you getting more than $1000 if you tried to sell it on eBay or something.

 

[NM]

18 months would be 50% through an expected life of 3 years (commonly used for taxation depreciation for such equipment). So the amount paid seems to be based on a 3 year depreciation life. You would need to argue that its useful life to you exceeds 3 years. I know my video camera is now 7 years old and still doing as good a job as it did when I purchased it and it still holds some financial value as far as I am concerned.

 

[JetLagged]

Maybe think of it as applying to tax depreciation of goods: many electrical items can be written off at 25% per annum - so a 50% depreciation over 1.5 years would fall about right, unfortunately - again, you need to read the T&C of your insurance policy.

 

[JetLagged]

NM - you beat me to it by a mere minute!

 

[richie9x]

It depends on the terms of your insurance policy. Some offer replacement cost/value whereby you can claim the full amount to by a new product or equivalent new product to what you lost. While other policies will only give you actual cash value which is what you got. See what the item is selling for second hand. If it is quite a bit more than what they are offering you then I would make an issue of it.

 

[haydensydney]

I think the response is reasonable.

You may need to change your perspective on the situation a little though e.g. dont think "I'm almost $1000 out of pocket" just think - "What awesome camera can I get for $942?". Glass half full my friend!

Further, in a year and a half I can only assume that video recorders have dropped in price so you could probably get the same sort of camera for the $ you currently have.

In terms of customer expectations vs reality of what an insurance product delivers when the policy responds to a loss, this is what bugs me the most. A lot of customers expect that because they pay $xx_ for a policy that they will be covered for anything and everything at full retail replacement values. This is never true and implies naivity on behalf of the customer (Apologies if i'm coming across as condescending Shayne2233, it's not intended).

Always read the PDS to ensure there are no surprises when a loss occurs.

 

[Shanye2233]

I do agree I just assumed I would be covered for the amount I paid . It was the top of the range model and now to replace it with another top of the range model is $2299. Yes I get more features and it's probably a much better camera but I only recieved half that.

I will dispute the claim amount with nothing to lose they may add a few extra hundred on top . They can't decrease what they gave me can they? I will look further into the PDS .

Ebay is selling the same camera ranging from $600 overseas to $1290 locally .

 

[BAM1748]

Some policies do have "replacement value", need to read the fine print to find out which ones, they will be more expensive of course.

Depreciation on electronic equipment is 40% p.a. normally.

Matt

 

[PLANT]

I found the same thing with TID with 18month old phone!
I disputed and offered 20% off the price I paid(but I did have to pay $100 excess aswell)
They increased the payout and accepted my offer!

 

[Shanye2233]

I have never been asked to pay an excess , If I ask for a review will they ask for a fee? They giving me $940 for a $1999 camera I purchased in may 2010.

 

[moa999]

probably more than what you could buy it for on ebay now though ??

 

[haydensydney]

They won't ask for a fee... the right to a review is a process required by law and as such they can't charge you for it. Chances are you will get some kind of increased benefit, though it might take some time. I think the claim goes to a panel within the organisation for group & review.

 

[Shanye2233]

That's what I was hoping a few extra hundred dollars . Im
in no rush I'm still waiting for the cheque in the mail. I'm disappointed I didn't get the full amount I paid I didn't read the T&C's I know next time

 

[Travel Guru]

The reason travel insurance companies offer a depreciated payout as opposed to a replacement or sum paid is that if they paid out the exact replacement cost on that or a similar model all of a sudden everyone would be losing their 2-3+ yr old cameras, phone etc etc while away so as to get a brand new one...this way it limits their liability while at the same time acting as a deterrent to those who might otherwise consider doing the wrong thing which only serves to drive up all of our premiums in the long run.

TG

 

[haydensydney]

Good summary Travel Guru.

The thing is unfortunately is that the actual rates of depreciation aren't noted in the PDS (or anywhere else) so it's hard for a claimant to know exactly what they should be getting... I think if your unhappy, ask for a review/go through dispute resolution and see what happens. You could claim that the device was in pristine condition and therefore shouldn't be subject to such harsh depreciation. Or something like that.

Good luck

 

[1Cover]

Hi Shane,

I hope you don’t mind me responding to your query. The team and I at 1Cover are always happy to negotiate with Allianz Global Assist on your behalf. We will represent you regarding a re-evaluation of your camera. In order for us to do this, we will need your full name and policy number (if available). Feel free to give me a call on 02 8252 0625. Thank you for voicing your concern it helps us to ensure all of our customers are satisfied with our service.

I look forward to hearing from you,

Kelly at 1Cover.

 

[haydensydney]

Nice to have you onboard Kelly - it's always good having company reps onboard to assist with members issues.