Re: Insurance question in case of total loss



(I am not a lawyer, and give no legal advice, I just read what the policy says...)

Our policy from Pantaenious has no such language in the event of a total loss. Your policy language is very troublesome to me because it seems to require you to keep paying premiums until you accept their settlement offer. Great incentive for them to drag it out as long as possible, and for you to settle for less than you are owed. 

Our policy has the following, which goes to a similar point but, to me, seems much fairer to all parties:

... the annual premium is deemed fully earned and non-refundable upon Pantaenius’ obligation to pay any claim, cost or damage reimbursement. Pantaenius shall have the right to offset any outstanding premium against any such obligation to make payment on a claim, cost, or damage reimbursement. 

In other words, if I (or they) cancel the policy before the end of the year, I receive a pro-rated refund--unless there has been a claim. In which case Pantaenius is owed the entire year's premium. If the entire year's premium has not yet been paid, they subtract the amount owed from the final claim settlement.  Payment of an owed settlement is not predicated on continued payment.  There is no requirement for ongoing payments in order to get the settlement for a loss covered by a valid policy, so no time pressure to accept the settlement, and no extra cash flow to them for being slow to pay.

To me, this seems only fair.  They have averaged the risks over the entire year, and if I have a claim they should be paid for that full year--no matter when the loss occurs. Our policy does not cover us one day at a time, but for the full year at one go.

By way of an extreme example, it would be unreasonable for me to have a total loss on the first day of the policy year, and then expect to pay only 1/365th of the annual premium.

Again, not legal advice, just my thoughts.

Bill Kinney
SM160, Harmonie
Annapolis, MD, USA

---In amelyachtowners@..., <uster@...> wrote :

Dear Amel owners,

On my insurance policy (Helvetia subscribed through insurance DeLassee) it says (article 8.4.4) that my insurance is automatically canceled in case of total loss - BUT (last line of that paragraph) that the insurance only stops when then settlement has been paid.

Which is why the insurance still ask me to pay the premium for this year and likely the next one (since it is 25% less than the agreed value I am contesting it).

Does your insurance says the same thing?

Thanks in advance, sincerely, Alexandre

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