A cautionary insurance tale

[iansoady]

As you will know, I had the Tri-Greeves and the XBR500 stolen a couple of weeks ago. I have to say that the brokers, RH were very efficient and the underwriters paid up the agreed values (less ?50 excess for each) this week. So far so good.

However, when I tried to add the 2 new bikes (BSA/Suzuki and Yamaha SRV250) to the policy I was told that the underwriters (ERS) wouldn't accept them. Not only that but they wouldn't renew the policy for the Norton, which is due for renewal in a couple of weeks!

On enquiring further I discovered that as 2 bikes had been stolen they were treating it as 2 separate claims - I did wonder why I'd had to fill in 2 virtually identical forms - so that meant I had 2 claims in the last year and they wouldn't accept the risk. The people at RH were very helpful and pleaded my case but to no avail.

The whole system is completely illogical. If I'd had one bike worth ?50,000 stolen they would have had no problem. Imagine if I had a stable of a dozen low-priced machines which all went? I'd probably never get insured again.

I don't know if this is common practice but in my opinion it stinks. I've emailed ERS's CEO with my comments but I don't expect a positive response.

I have managed to get similar cover from the broker I've used in the past - Peter James - but at an annual premium of ?325 rather than the less than ?100 I'd been paying.

[IanCordes]

Unfortunately, the insurance companies make sure they don't lose. That is some hike in insurance premium, although, to be fair, you are adding a more modern machine, the Suzuki, and a 250 with a modern 400cc engine, both of which could be expected to increase the premiums anyway. Let';s hope your agreed values were; erm; robust... I think you did well to be paying under 100 quid for 3 bikes before, though. That seems very cheap.

[iansoady]

The new broker (Peter James) didn't seem bothered about the Suzuki engine although of course as a total ignoramus I have no idea what year it is(!) Unfortunately I hadn't uprated the Greeves value from its original ?1500 - an omission I'm now kicking myself for - but the Honda was ?3,000 whih was reasonable and the Norton is at ?7,000 - so a total of over ?10,000. I'm lucky on several counts that the Norton wasn't taken as I suspect having 3 theft claims in year would put me firmly outside the pale and may even have put an end to my motorycling.

I have recommended the original broker (RH) to many people on the grounds of good premiums and perhaps more important no charge for mid-period adjustments which can really mount up. I now feel rather guilty for doing so although I have no idea whether other underwriters would take the same blinkered attitude as did ERS. My new cover is from a company called First Underwriting Ltd - no, me neither - via Peter James. I decided to just go with that rather than get more depressed by being refused by others.