The Financial Services Ombudsman are very clear about how insurers must calculate the 'Market Value'.
Hertfordshire (PRWEB UK) 31 May 2013
For many motorists, the undefined phrase "we will pay the Market Value" within their motor insurance terms and conditions has given a great deal of cause for concern and doubt. To help understand and clarify this phrase, industry experts http://www.car2cover.co.uk have published a useful clarification.
In the event of a motor insurer declaring a ‘write off’, the policyholder is normally entitled to receive a settlement payment equal to the “Market Value.” Contrary to what some commentators and policyholders might suggest, “Market Value” is not defined by the insurer and as such is not the concern some would have us believe.
According to Tom Barley, a spokesman for http://www.car2cover.co.uk “Market Value” is never clearly defined in a motor insurance policy and yet the Financial Services Ombudsman are very clear about how insurers must calculate the“Market Value” of a vehicle in these circumstances.
The Financial Services Ombudsman (FOS) who preside over a variety of disputes, expect all insurers to calculate 'Market Value' by reference to fully independent and impartial means and have published these guidelines to eliminate any ambiguity. See http://www.financial-ombudsman.org.uk/publications/technical_notes/motor-valuation.html#5.
The FOS require insurers to establish and make a ‘Market Value’ offer by reference to three motor and insurance industry price guides:
1. Parkers Guide
2. Glasses Guide
3. CAP value market manager
As such the policyholder can be confident that it is not the insurer who decides upon the 'Market Value' but a recognised independent and impartial industry guide supported if necessary by ombudsman enforcement.
The insurer is however entitled to adjust the recommended Market Value for mileage, condition and non standard fittings - but those adjustments are expected to be reasonable and in line with the price guide recommendations.
“If an insurer makes an offer that appears to be a mistake, the policyholder is entitled to challenge it and if necessary refer it to the Financial Ombudsman. It’s never been an issue for us when clients make their corresponding Gap Insurance claims, but if a policyholder wishes to challenge an offer – they can” said Barley
car2cover have been established as an online Gap and Tyre Insurance retailer since 2007 and are happy to provide as much help and information on these products upon request. Contact car2cover on 01438 728959 or email at mail(at)car2cover(dot)co(dot)uk