Transit Insurance Premiums
The premium is based on the total value of the goods and the proportion of itemised higher value items, for example, jewellery. The higher the ratio of high value items to total value, the higher the premium. The insured value is based on the replacement and/or repair at the destination although it is not clear in the documentation what this actually means. Another issue is that the insurance documentation clearly states that the value placed upon possessions would not be the value that would be paid in the event of loss. The insurance company would pay a percentage of the valuation based on some formula for ensuring that they minimise their payout. However, the premium does not change. It is based on your valuation. If you overvalue, the insurance company takes the premium and then revalues if you claim. You do not get any refund. So you may not realise it but you are responsible for the whole process. The insurance company gets all the profit. The removal company, apart from supplying the insurance link, is not involved in this third party transaction.
DamageImagine that some items of furniture are damaged in transit. Even if the removal company has admitted that the damage has been caused by their operatives, the matter is solely between you and the insurance company. The claim has to be submitted directly to them. You then have to fill out the claims form which insists on local quotations for the repair and/or replacement of all damaged items…a difficult thing to achieve in a foreign country where your furniture was not made. The process can become stressful because of the practical difficulties of providing the information demanded by the insurance company. At the outset it may be a healthier option to accept the possibility that some damage is going occur and the process of claiming on the insurance is too stressful. Then you may even consider whether taking out insurance is worthwhile as the chances of losing absolutely everything must be quite small.
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© Ray Chiverton
Costas Property Services
27 August 2009
