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Home/Law/You are a claims handler for an insurer. One of your insurer’s policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Discuss the basis of indemnity and settlement for the vintage car.

You are a claims handler for an insurer. One of your insurer’s policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Discuss the basis of indemnity and settlement for the vintage car.

The cardinal insurance law under review, in this case, is indemnity, which refers to the principle of restoring the value of lost or damaged goods. Stated differently, the principle of indemnity is designed to protect an insured party from a loss and reinstate them in the same position as they were before the loss occurred. Therefore, the cardinal goal of indemnity is to compensate the insured party for the loss suffered but not to enable them to benefit from the compensation. There are two types of indemnity contracts. The first one is indemnity insurance, which covers the loss of an insured product and is commonly applicable in almost all forms of a motor vehicle and property insurance. The second type of indemnity contract is known as contingency insurance and bases compensation agreements on the occurrence of a specific event. This type of indemnity emerges when two parties agree on a specific sum of money to be paid when an event occurs. In this framework, the insured party does not have to prove that a loss has occurred; instead, they just have to prove that the event occurred.

Paul’s case is an example of the first type of indemnity contract – indemnity insurance because it falls under the motor vehicle class of insurance. The goal of the insurance contract is to provide the exact amount of financial compensation for the damaged car. The basis for indemnity and settlement of the car insurance should be pegged on this basic principle, which is the restoration of the car’s worth before the accident happens. Conversely, it means that the insured is not entitled to get financial compensation above or below the original value of the car. The Chartered Insurance Institute affirms this principle because it states that the principle characteristic of any insurance contract is indemnity, and any legal provision or position that suggests otherwise is wrong and should be disregarded. In detail, this statement means that any variance in the contractual agreement that would prevent an insured party from getting full indemnity or that would give them more indemnity should be considered erroneous or wrong.

A school of thought advanced by Mathias et al. argues that the above interpretation of indemnity is rigid and fails to recognize the contractual principality of insurance contracts as opposed to their statutory requirements. This oversight means that parties to a contractual agreement could modify it. The proposal for Paul to be paid £150,000 as compensation for the damaged car is unacceptable because it would contravene the principles of the Gaming Act of 1845, which prohibits insured parties from gaining the compensation that is above their actual loss. A payment of £150,000, as opposed to the actual insured value of £120,000, would mean that Paul would get £30,000 in additional compensation above the actual loss – against the provisions of the Gaming Act. Therefore, this option is not feasible. It is also not prudent to pay £150,000 for the claim because the maximum account recoverable under any policy is limited to the actual amount insured in the first place. According to the case details of Paul’s insurance policy, the £120,000 face value of the insurance product has been maintained for several years, meaning that it is the maximum policy value that can be paid out.

The payment of additional expenses in the insurance contract is provided under the excess clause of deductibles in the Insurance Act 2015, which guarantees insured parties payment for losses that may not be covered by repairs and associated expenses. However, a reinstatement cover can be sought to cover similar expenses, and it should only come into effect when rebuilding or reconstruction occurs. This type of insurance is commonly associated with property and motor vehicle insurance products, as was the case with Paul.

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Academic.Tips. (2022) 'You are a claims handler for an insurer. One of your insurer's policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Discuss the basis of indemnity and settlement for the vintage car'. 9 October.

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Academic.Tips. (2022, October 9). You are a claims handler for an insurer. One of your insurer's policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Discuss the basis of indemnity and settlement for the vintage car. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-your-insurers-policyholders-paul-owns-a-rare-vintage-motor-car-the-vintage-car-is-insured-under-an-agreed-value-insurance-policy-for-the-sum-of-120-2/

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Academic.Tips. 2022. "You are a claims handler for an insurer. One of your insurer's policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Discuss the basis of indemnity and settlement for the vintage car." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-your-insurers-policyholders-paul-owns-a-rare-vintage-motor-car-the-vintage-car-is-insured-under-an-agreed-value-insurance-policy-for-the-sum-of-120-2/.

1. Academic.Tips. "You are a claims handler for an insurer. One of your insurer's policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Discuss the basis of indemnity and settlement for the vintage car." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-your-insurers-policyholders-paul-owns-a-rare-vintage-motor-car-the-vintage-car-is-insured-under-an-agreed-value-insurance-policy-for-the-sum-of-120-2/.


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Academic.Tips. "You are a claims handler for an insurer. One of your insurer's policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Discuss the basis of indemnity and settlement for the vintage car." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-your-insurers-policyholders-paul-owns-a-rare-vintage-motor-car-the-vintage-car-is-insured-under-an-agreed-value-insurance-policy-for-the-sum-of-120-2/.

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"You are a claims handler for an insurer. One of your insurer's policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Discuss the basis of indemnity and settlement for the vintage car." Academic.Tips, 9 Oct. 2022, academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-your-insurers-policyholders-paul-owns-a-rare-vintage-motor-car-the-vintage-car-is-insured-under-an-agreed-value-insurance-policy-for-the-sum-of-120-2/.

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You are a claims handler for an insurer. One of your insurer's policyholders, Paul, owns a rare vintage motor car. The vintage car is insured under an agreed value insurance policy for the sum of £120,000. This agreed value is based on an expert valuation carried out in 2015. The policy has been renewed annually, with no subsequent change to the agreed value being advised to the insurer. The vintage car was involved in a serious accident. Paul did not think the car could be properly repaired due to its extensive damage and wanted the claim settled for the full £120,000. The insurer insisted that the car was repaired. Replacement parts were hard to source and as a result the replacement parts, which were deemed suitable by the insurer, were not all vintage. An expert in valuing vintage cars, stated that in its repaired state the car is now only worth £100,000. However, if the car had not been damaged its value would now be £150,000. Paul wants to keep the car but argues that he should be given a cash payment of £20,000 to allow for the loss of value. Refer to one relevant case in support of your discussion.
You are a claims handler for an insurer. A policyholder of the insurer is a farmer who has submitted a claim in respect of the following losses caused by a lightning strike: Total loss of a tractor that caught fire when it was struck by lightning. Fire damage to crops grown to feed the farm animals. The cost of hiring a replacement tractor. The cost of purchasing replacement feed for the farm animals. Due to administrative issues within the insurer, the agreed claim settlement was significantly delayed. This resulted in additional tractor hire costs due to the excessively long period it took to settle the claim. Consequently, the farmer has also claimed for this additional hire cost. Discuss the farmer's legal remedy for the delay in settling the claim. Refer to one statute in support of your discussion.
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