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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. Refer to one relevant case in support of your discussion.

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.

In Leppard v Excess Insurance Company Limited, a similar case was reported where an insured party bought a property for £1,500 in 1972. In 1974, he insured the same property for £10,000 under the assumption that it would be the amount of money needed to replace the property if it was completely destroyed. The following year, the value of the property insurance was further increased to £14,000, but this happened to be the same year that the property was destroyed in a fire. The insurance contract provided a clause where the insurer had an option to replace, repair, or pay for the property. Subject to this clause in the contract, the agreed sum to be paid was settled at £8,694.

The insurer discovered that at the time of the sale of the property, the insured party would have accepted an offer of £4,500 for the property due to some outstanding issues he had with his neighbors. It was held that the insurer should have compensated the policyholder for £3,000 because the value of the land where the property was sitting was £1,500. This verdict implied that most policyholders over-insure their houses, and it is the case for Paul, who over-insured his vintage car. Therefore, similar to the ruling highlighted above, he was entitled to the original £120,000, which was the original value of the insurance.

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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. Refer to one relevant case in support of your discussion'. 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. Refer to one relevant case in support of your discussion. 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/

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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. Refer to one relevant case in support of your discussion." 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/.

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. Refer to one relevant case in support of your discussion." 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/.


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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. Refer to one relevant case in support of your discussion." 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/.

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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." 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/.

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You are a claims handler for an insurance company and are dealing with two insurance claims as follows: Claim One A claim by the next of kin following the death of an employee who was killed by a forklift truck during the course of their employment. The forklift truck was being operated in a non-designated area by a temporary member of staff, provided by an employment agency. A settlement payment for the death of the employee of £750,000 has been made under the Employers' Liability policy and a payment of £400,000 under a life policy. Claim Two A claim under a travel policy for bodily injury and damage to personal possessions. The claim occurred when the policyholder was on holiday abroad and went on a trip organised by a local travel provider. The insurer agreed the bodily injury claim but did not pay for the personal possessions, as they fell within the policy excess of £100. The policyholder's claim was settled for £15,000. The insurer pursued the local travel provider and due to fluctuations in exchange rates received £18,000. The local travel provider was concerned about reputational damage and provided the policyholder with a free holiday worth £2,000. Explain, with justification, the rights of recovery that are available for the payments made in Claim One above. Refer to one relevent case in support of your explanation.
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.
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