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Full Loss Insurance Payout? This is how long.....

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  • Full Loss Insurance Payout? This is how long.....

    How long does it really take get for the total loss insurance claim? The full story.

    As many of you know, my much loved K3 Gixer thousand was stolen from my home late January and I thought now that the claim has settled that it would be appropriate to tell you all how it works and how long you could be expected to wait for a payout or new bike in the unfortunate event it happen to any of you.

    Fraud is an unfortunate thing and the insurance industry is full of it. We all know it happens, it’s a reality of the insurance world. People making false claims saying their bike was stolen just because they cant sell it, or people saying they damaged their bikes on a public road when really that just flipped it at the Kwinana drags happens. We all pay for it. It’s a fact of life. Insurance companies know it, and this exposure to them is covered by the enormous premiums that we pay each year to insure our trusty steeds. In the end it is me and the other law abiding non fraudulent ones amongst us that are the ones that ultimately pay for it.

    It is therefore a fact that every stolen bike claim that comes through will at some stage thought its processing be considered as to whether it is a fraudulent claim or not. They will look into your insurance claim form , any history they can find on your and your financials and make your life difficult should they consider you a risk.

    It is in an insurance companies best interests to delay your claim as much as they can without you issuing a complaint. Why? The longer the money is in their bank and not yours the better off they are and the longer they delay it, the better the chance of your bike being recovered and their exposure reducing.

    Here is a blow by blow account of the process. In looking at this consider these things:

    (1) The bike was only 8 months old and insured from new with Swann Insurance.

    (2) The bike had traveled approximately 5,000 k’s.

    (3) There was no finance on the bike.

    (4) The bike was properly secured behind locked gates and bolted to the wall with an appropriate motorcycle lock. The insurance company had photographs of this from day one.

    (5) The bike had an alarm system. The insurance company had a copy of the installation receipt from day one.

    (6) I did not hesitate in following up the insurance company at any reasonable opportunity and request a deadline or estimated time on each process in settling the loss.

    (7) All correspondence from me was sent via courier. Some correspondence from them was collected by courier.

    ( 8 ) The bike was stolen in the peak of the riding season, not the middle of winter.

    In considering the above, a person could reasonably assume that firstly, there is not much point in the insured wanting his bike stolen intentionally because of it being too old, having traveled too many k’s, having mechanical problems, having trouble with loan repayments ect. There is also not a lot of room for the insurance company to say that they had not received any documentation or that the bike was improperly secured.

    What I am trying to say is, this claim went through as fast as any claim of this nature could ever be expected too. If it were to happen to another person whose circumstances were different than the above, then I would add days and perhaps weeks to the total time frame for payout.

    With that picture in mind, here goes:

    DAY 1: Bike is discovered stolen and reported to Police.

    DAY 4: Occurring at the start of a long weekend, the insurance company is contacted by phone at the first opportunity on the next business day. They advised that a claim form would be sent in the mail.

    DAY 6: Claim form received.

    DAY 7: Claim form completed by me, witnessed by a Justice of the Peace and returned by courier to Swann’s Perth Office.

    DAY 10: Swann contacted me by telephone and advised me of my claim number and requested I send them both ignition keys to the bike.

    DAY 11: (after franticly pulling my house apart to find my spare key), Forwarded both ignition keys, two alarm fobs and the pillion seat to Swann by courier.

    DAY 17: I contacted Swann to find out the progress. After probing them several times for an estimated timeline, their unhelpful claims rep said they could not say, not even when I prompted “a day?, a month?, a year?”.

    DAY 25: I contacted Swann again to find out progress. They advised that the file had been sent to their ‘Investigations Unit’ and they returned it on day 20 but it can take a few days to get back to their section. They advised that the file will be reviewed by their manager and if in order they will proceed to settlement.

    DAY 33: I contacted Swann again to find out the progress. They advised that a ‘Release Form’ had been sent to my PO Box on day 32.

    DAY 34: Having not received the Release Form in the mail, I requested they reprint and I would send a courier to collect it. Courier received.

    DAY 35: Signed Release Form and Subrogation Notice returned to Swann by courier. (Form they said they sent on day 32 arrived in mail.)

    DAY 41: I contacted Swann again to find out progress. They said that the settlement was being signed off today and that the cheque had to come form Melbourne and will be two days.

    DAY 46: I contacted Swann to find out where the cheque was. They said that the cheque was being drawn today could be expected within a few days.

    DAY 49: Cheque received.

    49 days from go to woe. 14% of the riding year. If I had of sent documents by mail and not courier, it would be a good two months. If the claim was a little tricky, I doubt that three months would be out of the question.

    Protect your bike guys. 14% of the riding year it may be, but it really is 50% of the best time of year to be riding. Do everything you can to make sure that it doesn’t get nicked and always reject an opportunity to buy sus bitts from the backyard Joe and try and stop the demand for these things to be nicked in the first place.

    Now........... when are those 04 modles due out again?

    So on the eight day, after wasting time faffing about with unimportant guff like heaven & earth & the waters & sky & creatures [& having a wee kip] & man.... God created PSB (GenesiSX-R1000)

  • #2
    Glad to hear your ordeal has been finalised. Sorry to hear that your no claim bonus will suffer tho.

    Hope to see u back out there, on something other than Vinnie (Not that there is anything wrong with Vinnie).
    If you can... you MUST!


    • #3
      good reading Deej.

      I'm glad youv'e got the cheque all sorted out now and look forward to seeing you back on the road soon.....

      As you say insurance company would rather delay payout for many reasons and another one would be that while the cash is in their bank they can either ecrue interest or use it to invest, This is all very good in a bussness sence but totaly stinks when some poor bugger looses their only means of transport for 2 - 4 months while some bean counter is holding out on their cash.....

      I wish there was another way that you could be covered.....

      In the UK(where insurance was mandotory) the company I worked for had a "sheriffs Bond" which meant they had to dump a huge bundle of cash with the government ( I presume) and this was dipped into whenever a claim was made against them.....But they would have had to fix their own fleet......

      What about a PSB insurance policy custom designed for us ??? to hard I would think....


      • #4
        Thats sounds normal :oops: I had my bike hit in a car park, and was deamed a write off, Bike was only 6 months old. It also took a number of phone calls and 5 weeks, I even drove in and picked up the cheque myself.

        Good to see it's over for ya 8)


        • #5
          Over the last few months with Klinks and Deejs bikes being stolen it was very pertanent that at no times did you guys do your blocks. It is a very long drawn out proccess to which you guys kept a level head (except klinks his wasn't straight to start with was it :?: )

          Imagine not making all those follow up calls and keeping the pressure up it could have been much longer. WELL DONE


          • #6
            Glad to hear that all has been sorted out. Well descision time now. So what is it gonna be Deej?? back to the GSX-r1000 with all the extra's added in i am sure...lolololol

            Well this is another reminder to all, to lock up when you can. I have a car port and well it has a sliding door to hide what i can. But i also have the anchor in there with this big lock to hold my baby in place. i know it's not gonna stop them from taking my baby if they want it. If they want it they'll take it i tell you. WHERE THERES A WILL THERE'S A WAY!

            What i normally do is drive around the area a few times before i go home. I never take the same path back home. Yeah i am paranoid, ask me wife she knows.
            Well take todays example. I was coming off the freeway and i noticed these guys in an old escort also came off. Before i had come off these guys were in the right lane. Now they are exiting? I felt like they were following me. I went a different way than i normally do and went to the deli even though i didn't need to. i sped up a bit just to see what would happen. I was like hidden and was watching em. I could see they were trying to follow me cause they were pointing fingers and yelling at each other as if to hurry up. I was spewing. I looked at them as they drove by and pointed me finger at em and they saw me and just bolted. i was gonna follow em but with all the confussion in the car park and the centre barrier, i had no chance.
            I tried to get their plates but didn't get numbers. What do you do in this instance. nothing. ???

            My point being, don't just lock up. Be paranoid!!!!!!


            • #7
              As Gordo said, an interesting read.. cheers Deej.

              It's always good to know how long these matters can take!
              Glad to hear it all worked out in the end though.
              Right now Im having amnesia and deja vu at the same time. I think Ive forgotten this before.


              • #8
                wow that really opened my eyes up.
                That was a great post with lots of information that hopefully won't come in handy.
                Must invest in better security :shock:


                • #9
                  firstly i'm glad you have it sorted....
                  secondly... there is a valid reason why you received the money on the 49th day and not the 41th day.... there is a period required for writing off a bike when no bike is found... and that period is 6 weeks...add in the weekends and they have payed you out pretty promptly....

                  one of my friends is being screwed by swanns right now for there claim and he is in the insured rider hit him on his bike and swann are taking the piss something cronic.

                  because of this and a few other claim problems... i chose Arista price, lowest excess and prompt service...

                  Hope to see you on the road soon Deej
                  Atlas Performance, dyna pumps, " your name goes here"


                  • #10
                    there is a period required for writing off a bike when no bike is found... and that period is 6 weeks
                    This is kinda untrue. When my bike was stolen I asked Swann if there was a period where they wait to see if the bike gets recovered. She said, "no, there is no waiting period... your claim gets processed straight away. But if your bike gets found it becomes our property......"

                    Now in reality, you sort of do end up waiting a bit anyway for Swann to sort their shit out.
                    If you can... you MUST!


                    • #11
                      I know of a few people who have had delays with Swann, both with theft and for damage claims. When I lived in Perth/Mt Lawley someone tried to steal my week old bike from outside the house - fortunately they didn't manage to break the steering lock, but it still cost me to get it replaced.

                      Anyway, about 10 days later I was parking up in the yard and a neighbour came across to warn me about thefts in the area - someone had stolen her Blade the previous week.

                      I mentioned that they'd had a go at mine as well the same night and she told me that Swann were refusing point blank to pay out on her claim, stating that they didn't believe it was theft as no trace of the bike had been found and that (their words) she had arranged the theft herself!

                      I offered to contact Swann and tell them what had happened to me. I gave them a stat dec about my bike, the fact that I'd never met the woman before that day and a few other facts and they paid her claim in full 2 weeks later!

                      Likewise with Swann when I had to claim for storm damage to my 250 they got a bit suss, especially about the water in the tacho - as I said to them "I didn't see the branch fall and dent the tank and tear the seat, but I saw the tacho half full of water that took 2 days to drain out" - they paid up in the end.

                      So the lesson is - protect yourself, get corroborating evidence, take pics, and find independent witnesses to back you up - you never know what else might have happened in the neighbourhood.

                      Middle of last year I swapped to QBE and they've been great so far - including being a hell of a lot cheaper than Swann.

                      And Deej - have fun spending the cheque!