I don't see why this would be illegal (but I am no expert in claims handling).
Cash Settlement Amount for a "Write-Off"
- Thread starter BusaBob
- Start date
I don't see why this would be illegal (but I am no expert in claims handling).
Platinum Cycle
Well-known member
It's not illegal, as long as it's agreed to up front when the determination of the value of the bike is made.
It happens all the time with cars, customer removes his fancy rims and tires and puts the factory ones back on.
It happens all the time with cars, customer removes his fancy rims and tires and puts the factory ones back on.
That's what I thought, and I would think it would be common. I'm sure that the other member could have worked out the replacement of his aftermarket parts with OEM as part of his settlement if he asked.
Well then what they do is illegal, When a vehicle is determined a write-off every and all part on the car goes with it, In the case you drive it home I guess you could take all your aftermarket parts off before the insurance company looks at it and claims it a write-off, But if you have a set of $10,000 rims on a 89 civic and it gets written off so do the rims.
You could ask if you can remove them but if they say no you can't.
Right about now Turbodish would be chimming in if he was still here lol.
So where is the limit of stuff you are allowed to take off? What if you have an aftermarket engine? Can you take it out and put your old one back in?
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According to Platinum_Cycle, what you are allowed to remove/eplace on the vehicle (and the subsequent valuation of the vehicle) is subject to negotiation with your claims adjuster when settling your claim.
Maybe he is right?
I was just going from what the claims adjuster told me last month when my bike was in this exact scenario.
They told me that if it is a write-off the bike is written off as is and it is fraud to replace/remove any parts from the motorcycle.
Also my friend awhile back had rims on his car when it was written off and was not allowed to replace them with stock as the car was written off as is.
I'm not an insurance expert just explaining my run-ins in this same situation and assumed the adjuster knew what he was talking about.
It would be fraud if you removed the parts without the knowledge of the insurer, but there's no reason why you couldn't remove the parts if both you and the adjuster agreed to it as part of the settlement. I don't think the adjuster would be obligated to let you do so, but would probably allow you to do so out of courtesy. It sounds like your adjuster wasn't good at explaining things to you.
Ok So if you do it without the consent (which doesn't have to be given) of the adjuster then you could be charged with fraud, but if you agreed upon it with both parties (which they would most likely give you less money on your payout as you are removing parts that could get them more money back when they scrap it).
Also I liked my adjuster as I was hoping for a cetain amount of a cash settlement to repair my bike (it was $4,300 damage as per Honda, pure cosmetic) and he paid out over $1,500 more then what I wanted
Platinum Cycle
Well-known member
I am an insurance expert. And I'm telling you as long as you're up front you can take whatever you want off the car. It's simple you only claim what's left. Take the damn engine if you want, just let your adjuster know and they will adjust their valuation of the car / motorcycle.
But, if anyone here got better advice some brother's cousin's sister who worked at an insurance company 10 years ago and you prefer that to my comment above then by all means, go with that advice and disregard my 22 years (and counting) in the industry.
But, if anyone here got better advice some brother's cousin's sister who worked at an insurance company 10 years ago and you prefer that to my comment above then by all means, go with that advice and disregard my 22 years (and counting) in the industry.
I was just going off personal experience that happened a month ago and had no idea you were the expert here or I would have never added my personal experience.
When I asked the adjuster last month if the bike was written off can I swap the exhaust with the stock one and he said no (No explanation).
So it was just like we all said, if they do let you take it they are going to take that value off your claim.
OpenGambit
Banned
So from your adjuster saying "no" with no explaination you came to the conclusion that its illegal and a fraud charge?
Yes, because in the 2 cases I have seen with my own eyes parts were not aloud to be replaced from the vehicles. By the looks of it their were 2 adjusters that didn't fully explain every option.
So when a vehicle is written off the claim is made on how it is at the time of an accident,
So what makes it legal and not fraud when you replace expensive parts with cheaper ones after an accident and not mention it to the insurance company?
OpenGambit
Banned
Just making it clear to readers what the source of your information was, or lack thereof.
Just like I said only personal experience and said I didn't know the other person was an insurance adjuster and my adjuster never went into full detail about every inch of how insurance works.
And since you have such a hard-on to prove someone wrong that already said I guess I was not fully informed in my personal experience (as I have mentioned numerous times).
Since I'm wrong and you want to make it clear to the readers, How about your source of your information that makes it legal and not fraud when you replace expensive parts with cheaper ones after an accident and not mention it to the insurance company?
OpenGambit
Banned
I didn't say you were wrong or right.
You did not mention that its your personal experience / speculation until someone flat out told you you were wrong.
I also didn't say anything was legal or not legal.
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so i still have not heard back from Primmum so I called the GIO (General Insurance Ombudsperson) this past wednesday. I spoke to a very polite and friendly person there who was very informative and referred me to the Ombudsperson at Primmum (apparently all insurance companies are required to have an Obudsperson).
I gave him a call and left him a message explaining my situation (politely). He called back within a couple hours and said he'd contact the adjuster's supervisor and get to the bottom of this issue by sometime in the afternoon.
It is now thursday evening and I still haven't heard anything from Primmum, or their Ombudsperson.
I'm going to give them until monday and then call the GIO again.
If this is how they conduct regular business, I'm completely shocked.
I gave him a call and left him a message explaining my situation (politely). He called back within a couple hours and said he'd contact the adjuster's supervisor and get to the bottom of this issue by sometime in the afternoon.
It is now thursday evening and I still haven't heard anything from Primmum, or their Ombudsperson.
I'm going to give them until monday and then call the GIO again.
If this is how they conduct regular business, I'm completely shocked.
Might be worth it to call the ombudsman tomorrow and ask him for an update. Your politeness will go a long way with the ombudsman. The ombudsman might've been told by the adjuster that they are calling you and may not know that they have not contacted you. Give them the benefit of the doubt that way when you call GIO you can say "I did my due diligence"
thanks, will do.
Hang in there. I had a telephone party with Ombudspersons before and they were generally EXTREMELY courteous, helpful, and professional.
took your advice and called Primmum's ombudsperson again today, leaving a message to just say that I haven't heard back from anyone and was wondering what the time frame was moving forward.
he called me back within an hour and explained that he spoke with the supervisor, and that they should have called back within 24 hours. he actually seemed genuinely somewhat irritated that the supervisor hadn't done so. He said he'd speak to the supervisor again to find out what the delay was, and that he'd get the supervisor to call me this afternoon.
it is now evening and I've yet to hear back from either.
argh. there seems to be some serious issues in that department.
gonna give it until monday and then call the GIO again.
