ProfJohnL said:
Hello Paws.
If you had read my earlier posts in the thread you will have seen I was pointing out that there should be no difference in the quality and resolution of claims between old or new customers.
It was Ray's last paragraph that I was commenting on, and if I got wind of any hint that any claim I made was handled less favourably than a longer standing customer, I would not take it lying down.
So I don't quite see the point you were trying to make?
Hi PJL
As you would expect I always make a point of reading, most carefully, all the posts in a topic before sending in a response...
I'll try to explain, by way of a simple example, the point to which I was alluding with reference to "marginal claims" as mentioned by Raywood , and hope you will see the reason why in some circumstances, a long established, and valued client might on occasion receive more money from his policy than someone who was a brand new policyholder......
It's important to remember that a claim often has a number of aspects, but for simplicity let's just look for the moment at policy liability, quantum and commercial practice.
You are quite right, in the final analysis if the insurer and the policyholder cannot agree upon policy liability, then it will be up to the courts to decide if the loss was caused by an insured peril and if the other factors that make up a valid claim were present and correct. They will not normally take into account that the claim is being made by a policyholder of long standing or a brand new one, as this is usually not relevant to the action. Neither would it normally be taken into consideration by the court when quantum is in dispute.
Commercial practice is however a slightly different matter. (relatively few cases progress to involving the courts, more often negotiation between the parties results in a satisfactory settlement....although the participants may have a somewhat subjective view!)
Therefore, let us for a moment, consider a recent non caravan related claim that I became involved with.
1 A client had purchased an expensive laptop computer for nearly £1000 and 3 weeks later inadvertently spilt a full mug of hot, sweet, milky coffee over the computer, that was in use at the time, inundating the keyboard and other areas.
2 It was accepted that the laptop computer was beyond economic repair as a consequence of the accident.
3 The client was aware of the fact and accepted that he had no policy of insurance or arrangements in force that would provide cover for such an event. ( although of course such arrangements are available)
4 He was advised that an approach be made to his insurers with a request for "sympathetic consideration" of a claim under his general house contents insurance, and pointing out that he had been a policyholder for some 30 years with numerous personal and business insurance policies with them, and apart from a small claim for minor property damage following a burst pipe about 25 years ago, had been claim free.
To cut to the chase, after an initial refusal, but following a subsequent request for the matter to be submitted to underwriters for consideration, a favourable response was received. They pointed out that there was no liability for them to pay, as there was no effective cover in force, but purely on an ex gratia basis, as a gesture of good will, and recognising his long standing as a valued policyholder with an excellent claims history, they were prepared to offer him, without prejudice £750 as a contribution to his loss.
Needless to say he accepted their offer with alacrity and received a cheque 4 or 5 days or so later.
It is doubtful if a brand new policyholder for say a household contents only insurance, with no track record or previous contact with the insurer, in the absence of policy liability, would have received a similar offer. ( although I suppose it's just possible!)...
A policyholder should always receive appropriate treatment with the proper payments made where there is liability, however commercial practice, whilst differing from insurer to insurer in the finer points of policy drafting, extent of cover and extensions available, interpretation, terms, conditions and procedures and a few other things also play an important part, in selecting an insurer, either for a new policy or a renewal.
The premiums to be charged for the covers is an important factor but by no means is it the sole reason for consideration when making a decision.
I hope that this simple example will go some way to explain how someone might be treated to a lower or zero payment compared with the payment that might on occasions be offered in similar circumstances to a valued and long standing policyholder.
Regards
paws
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