New cover a market first in UK motor insurance
LONDON, March 15, 2016 /PRNewswire/ -- Owners of older cars that suffer partial damages can now be compensated for the subsequent loss in value, following several changes to Chubb's motor policies.
Chubb has introduced Diminution in Value (DIV) cover, which pays the client the difference between a car's market value before and after a repair as well as the repair costs. Previously only available for fine art and wine under contents insurance, DIV has been introduced to motor policies following extensive research among existing clients, brokers and high net worth car owners by YouGov on behalf of Chubb.
DIV cover applies to cars more than 15 years and is one of a series of covers introduced to Chubb's motor policies. Key benefits include:
- If a client's insured car is partially damaged, Chubb will pay the amount required to repair or replace (whichever is less) the damaged parts.
- Diminution in value is applied if the car has been valued/purchased at least 24 months prior to that insured loss and has been repaired, and the market value of the car immediately before the damage exceeds the market value immediately after the repair. Chubb will pay the difference between the market values before and after the repair.
- Maximum cost is up to 100% of the covered loss or £250,000 or 20% of the amount of the sum insured, whichever is the lesser amount for that vehicle.
Chubb has also introduced Lease or Finance Gap Cover that gives financial support to drivers who buy new cars on credit that are stolen or written off by a covered loss. The motor policy will now cover the unpaid debts due on the lease or finance of a car. This is the first motor policy available from an insurer to automatically include this cover and provides more certainty about buying a similar car after a covered incident. It negates the need to buy additional, and often very costly, 'gap' insurance cover.
The policy would exclude overdue payments at the time of loss, financial penalties for wear and tear or high mileage and cost for additional items (such as extended warranties, carry over balances from previous loans and credit life insurance).
Other key changes to Chubb motor insurance policies include:
- Student fees cover, if a person is injured/killed in an insured vehicle. This is another market first.
- Market-leading limits for Extended Replacement Cost and Extended Reinstatement Value. Additionally, substantial inner limit increases across the policies, including single limits for valuable articles.
- Cover for costs associated with injured/dead pets or horses where an insured vehicle is involved.
Tara Parchment, UK and Ireland Manager of Personal Risk Services, said:
"Chubb's pioneering new covers give our clients even more certainty about how they would be treated after an incident. We understand that even after using first-class specialists to repair damage, the intrinsic value of a car may be affected- whether it's due to the lack of original parts or the mere fact that the car has been repaired. We also know that the re-sell value of our clients' cars is important to them and, to some, their cars are considered unique pieces of art. Our service doesn't stop at paying to restore or replace a car but extends to protecting our clients' assets and finances."
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is distinguished by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, underwriting excellence, superior claims handling expertise and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 30,000 people worldwide. Additional information can be found at: new.chubb.com.