Katie’s* car was damaged in an accident. The insurer assessed repairs at $16,374.85. The pre-accident market value of the car was $6,500, which it then increased to $7,500 to take into account the new alloy wheels. The insurer offered Katie $7,500.
Katie believed the claim should be settled for the $10,500 sum insured (as specified in her policy schedule), not the $7,500 market value. The insurance policy said that the maximum the insurer would pay is the lesser of the sum insured or the market value. As the market value of $7,500 was less than the $10,500 sum insured, this is the maximum the insurer had to pay.
Complaint not upheld.
*Names have been changed.