Why Insurers Indemnity New for Old Electrical Appliances?

Many insured assume the householder policy making a claim, they would receive a new replacement cost for the replacing stolen, damaged or lost items.

While this certainly might be the case, but often it isn’t always. Many insureds are disappointed to find that the terms of their cover mean they only receive a claim settlement after the age of items and wear and tear have been taken into account.

What ‘new for old’ means

‘New for old’ ensures that when you’re claiming on an item (although not necessarily all items) you will be compensated sufficiently to exchange it for the exact same, new version; or, if that no longer available, the latest equivalent.

Criteria quality Insurers Indemnity New for Old Electrical ApAppliances?

The said claim items must be less than 5 years old.

It must be adequate sum insured on each renewal.

Let us say you purchased an item cost RM10,000.00. On each renewal, the sum insured must be also RM10,000.00 from 1st to the fifth year.

What new for old policies won’t cover

Easily ruined or lost like clothing, and bed linen only a few items new for old policies won’t include compensation for.

The trendy fashionable items like the customized handbag, shoe and handphone are in the excluding list. It is best to read the small print in the exclusion clause as policies vary between one insurance companies to another insurer.

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Impact Damage by Insured’s Own Vehicle. Is it payable? What shall we do? Claim own car insurance? No NCD on renewal? Repair own car and own house out of own pocket?

Impact Damage

Impact Damage due to Insured’s own Rail/Road Vehicles, Forklifts, Cranes, Stackers and the like and articles dropped therefrom. “In consideration of an additional premium of RM._____________, it is hereby agreed and declared that the policy is extended to cover loss and/or damage caused due to impact by direct contact to Insured’s property caused by Insured’s own Rail/Road Vehicles, Forklifts, cranes, stackers and the like and articles dropped therefrom.”

Wee hours of the morning

A loud “Bang Bang” disturbed the eerie silent moonshine night.An elder couple drove tiring over an hour drive after attending their relative’s wedding reception in a posh hotel. His forehead oozing out a lot of blood, his white shirt turned into blood red. His wife with her broken arm crying her daughter for help.

To his horror

After crawling out from the vehicle, the strong impact had demolished the front auto gate, his car rammed right to front broken brick wall. The main hall partially damaged, with broken glass scattered all over the main hall.

” Oh my God” Lina wake up!” the couple shaking their daughter vigorously, to no avail. Lina and her friend were lying motionless in a pool of fresh blood.

They hurriedly called the ambulance, it arrived 15 minutes later. The paramedic rushed four of them to the hospital. Fortunately, their younger son was in the back room, found sound and unhurt. He startled to see the messy hall. At sixes and seventh, wondering what the next course action to take. Such a freak accident does happen most public would panic.

Take pictures of the scene

Insured had to make a police report immediately. Try to mitigate the further loss by guarding the house content being robbed. Go through the fire or house owner or householder policy to see whether the policy has an additional peril for Impact dagame by insured’s own vehicle.

Adequately insured.

There is only a deductible of RM 400 for the impact damage by insured’s own vehicle. The auto gate and brick of the main hall and part of the damage wiring system, door and lock cost about RM50 000 less Rm 400 deductible thus the insured can claim up to RM49 600

The Elder couple and his daughter.

They can claim up to RM10 000 or 50% of the sum insured. As for Lina’s friend, she can claim up to RM300 000 for her bodily injury under public liability in the fire or house owner policy.

House content like television, sofa set, some decorative item like painting, flower vase or table and chair, it is payable under the householder policy provided that the elder couple also purchased such policy. Otherwise, they act as if their own insurer.

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