Insurers Indemnity New for Old Electrical Appliances? Can you believe it? If insurers do pay your claim.The public would have two responses.” I….s that tr…….ue? Martin asked with his unbelievable eye.
” Yes, my Led Television which I brought in 2014, the recent lightning damaged it, the insurer paid me the 2017 current price” Mary proudly told Martin.
” No depreciation or wear and tear? Which insurance company would be so kind to pay you the new current price? Who is your insurance broker/agent, Can you introduce to me? Martin probe further with more questions.
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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