Before we turn this into a bash Kurnia thread, can somebody tell me what did Kurnia do wrong in this case? This is how underinsured policies are calculated. All those who think that their Amassurance, Panglobal, MNI, etc etc is so good, why don't you call them and ask them what happens if you try to claim for an underinsured policy. They'd do the same thing Kurnia is doing. It is just part and parcel of all insurance claims.

There is really thing more to discuss in this case. TS did not insure his property 100%, therefore cannot get 100% claim. TS did not send the car to a panel workshop. Insurance company cannot force the TS to go to a panel workshop if TS did not ask. Typically case of "Why didn't you ask?".

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Added on March 19, 2009, 11:48 pmHow can you claim 100% when you did not insure the property for 100%? Having an insurance does not mean you get 100% claim.

This post has been edited by sleepwalker: Mar 19 2009, 11:48 PM

No, that is what almost everybody assumes, which is wrong. At one time I thought it was this too until you look up insurance policy on underinsurance. Every single insurance company has the same policy. To insure a car of 100k for 50k, you are telling the insurance company that you are only insuring half the car. Hence any claims against the insurance company will result in getting only half the claims. This is not life insurance where you cannot put a 'market' value for life and therefore you are insuring the amount that you can get when you submit a claim. For property insurance, this is how it works.

This is taken from AXA insurance FAQ: http://www.axa.com.my/index.asp?pageid=cs&prodid=faq

Question: What is 'underinsurance'?
Answer: Underinsurance means you insure your property (house, car or whatever) for less than it is really worth. If you do this, the insurance company is usually entitled to reduce any claims payment to you. For example, if you insure your house for RM 200,000 when it is has a true value of RM 400,000, the insurer may be entitled to reduce any claim payment by half (because you have only paid half the premium that you should have done). Therefore, it is important that you set and regularly review values you declare on items you are insuring.

This post has been edited by sleepwalker: Mar 21 2009, 12:51 AM