Check the fine print on your bike's insurance policy.

Discussion in 'Australia' started by Happy Snapper, Jun 30, 2020.

  1. Happy Snapper

    Happy Snapper GOMOB.

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    So Sunday before last I had my 2018 1200 GSA hit on a roundabout. I was on the roundabout with no traffic near me, blinker on for the "Second exit" and a woman whom I am sure was on the phone just drove straight in looking directly in front of her. Lots of air horns, strobing driving lights and she still looked straight ahead. Meantime I have gone full jihad on the brakes, ABS is firing and still she is looking straight ahead. Almost as if she is in a trance.

    I am looking for a way out.... didn't find it.

    Houston, we have contact!

    Her car hit the left hand pannier, bike went down lots of noise and I roll / slide onto a traffic island.


    Bottom line is I am gravel rashed through my jacket on my left forearm and my left knee. Jacket and pants stayed together. Few hours in casualty and the bride picks me up with help from Sleepy John.

    The GSA.. well poor old MAXine is rooted. Write-off. Like left hand crash bar through the camshaft over and destroyed the inlet camshaft drive gear. Final drive, both wheels and on it goes.

    Insurance: Always been with Shannons for my bike, my Calais and her Z4.

    And never had an issue with a claim before. Always good to deal with.

    Until now.

    Shannons advertise new for old replacement up to 2 years old. The GSA would have been 2 years old come mid July or so.

    Sounds good? Well not really.. you see if I had of signed up with Shannons last year it would have been 2 years and if I had renewed with Shannons in July 2020 it would have been 2 years from that point on. (Useless as the bike would have already been 2 years old) So because I signed up for this bike in July 2018, only 12 moths new for old applies. But this would become 2 years upon any renewal from June 2020 onwards. But the bike would be 2 years old come July so null and void.

    Stupid

    So no new bike for Happy and Shannons want to pay me the agreed value. I said at this point I would not accept the offer and have told them I want the decision sent higher. This arbitrary point in time on a calendar where customers who have been with them longer get not as good treatment as their new customers is.. well disappointing. Other bike insurers now offer up to 3 years replacement new for old. (Been busy on the net today)

    Shannons have not been the cheapest insurers ever, but I cheerfully paid up as I believed that their performance where the rubber meets the road would have been better. Just getting riding gear replaced is a bit weird.. different people call me all the time. I thought they would have assigned just one person to handle the claim from start to finish. Not this time!

    So if you are insured with Shannons, and your bike is under 2 years old; then do yourself a favour and read the PDS on their website. As usual they play ducks and drakes with the wording.

    Shannons/Suncorp/AAMI are all the same.

    If I cannot get them up into a new bike (talking $5K here) then I will move all of our vehicular insurance somewhere else. I am not vindictive about this, just a business decision. I go where I am looked after.

    We shall see what happens in the fullness of time.... in the meantime, check the fine print on your bike policy.

    I am OK, up and about.. SWMBO is now OK about another bike.

    She wasn't too happy though when I rang her from the ambulance I can tell you.
    #1
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  2. Sebastionbear

    Sebastionbear Oh! heck...

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    Glad you're OK @Happy Snapper - that's by far the main thing.

    I agree you should move all insurance to another company if Shannons don't come to the party. It seems petty that they won't.

    Hope it all works out.
    #2
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  3. bikeroz

    bikeroz Long timer

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    I'm trying to understand why they not replacing it, but struggling to figure out why from your description.
    #3
  4. Canary

    Canary Long timer

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    I am also not sure why they are not replacing it, and very interested as we have many vehicles with Shannons and recently added a new car. :ear
    #4
  5. Woody2627

    Woody2627 Grey Wobbler

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    As with all all insurance, you have to do your homework. Find out who is the underwriter, then look at their PDS, because they are the ones providing the insurance. Shannons, AAMI, API etc are not insurance companies, they are resellers of someone else's product. Shannons are a classic, advertise how motorcycle focused they are, but the bottom line is the insurance comes from the parent company which couldn't give 2 hoots what you ride.
    #5
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  6. Happy Snapper

    Happy Snapper GOMOB.

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    OK guys... so this is the go as clear as I can explain it.

    Shannons new policy as I understand it is to offer new for old up to 2 years old on vehicles purchased from 2019.

    For vehicles purchased and insured before that date, you will get your 2 years new for old on your policy once you renew from June 2020 onwards, and not before.

    So my bike was new in July 2018, policy renewed in July 2019. So the 2 year new for old does not apply. However, if I renew in July 2020 I get the benefit of new for old, except my bike would be 2 years old.

    Crazy stuff.

    I will get a new bike either from Shannons or by using Shannons cash and putting the difference in myself.

    Whenever you renew, they send you updates on their PDS and like as usual I have never ever thought about reading them

    Here is a link https://www.shannons.com.au/insurance/pds-update/

    A big surprise for me, 20 years with them... we will see what happens.

    A lot of bike insurers offer 3 years new for old conditional they have had you from day 1 with the new bike.

    Caveat Emptor.
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  7. Happy Snapper

    Happy Snapper GOMOB.

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    Thanks mate. I'm all good.. only hurts when I laugh or cough.
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  8. Happy Snapper

    Happy Snapper GOMOB.

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    Shannons is under the same umbrella as Suncorp/AAMI/API etc

    So when you lodge a claim, you are not dealing with "like minded motoring enthusiasts who share the passion"; you are dealing with faceless folks with calculators.
    #8
  9. Bounty1

    Bounty1 Been here awhile

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    Glad your are OK Happy Snapper! Good luck with the insurance.
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  10. Happy Snapper

    Happy Snapper GOMOB.

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    Thanks mate!
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  11. Cruz

    Cruz Lost but laughing.

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    How do you get 2 years new for old when you renew in 2020 if your bike is already or nearly 2 years old if you insured it earlier?
    #11
  12. Happy Snapper

    Happy Snapper GOMOB.

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    Well that's the entire point Cruz. Too stupid for words. I would have had to renew in June ahead of my July renewal and before I came off.

    Sadly my crystal ball has flat batteries.

    People reading lines from a screen to you..... not actually taking in what they are reading.

    M
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  13. Big Willy

    Big Willy Gen. Italia

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    Being a long time customer , hopefully with minimal claims over that time, they should in their right mind make an ex gratia payment and get you a new bike, especially if at the last renewal they didn't make you aware that your existing policy was sub par. I would get right up them...nothing to lose. And if insurers no longer have the knock for knock agreement, then they will get reimbursed from the third party's insurer anyway.

    Every contract should be reviewed at renewal time but insurance especially. They are extremely crafty I have found.

    Best of luck and hope you heal quickly and well
    #13
  14. Happy Snapper

    Happy Snapper GOMOB.

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    Thanks buddy. Trying the softly softly approach first. More tools in the kit yet!
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  15. Cruz

    Cruz Lost but laughing.

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    Sadly, it pretty much goes along with a couple of others I know who were insured with Shannon's for years and were very happy till they had to make a claim. None of them are insured with them any more. Every insurance policy renewal you receive states you should read it and accept what it is or otherwise contact them. I have renewed 2 bikes, 2 cars and house and contents in the past 2 months and it does your head in.
    #15
  16. Cruz

    Cruz Lost but laughing.

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    So, if you had renewed in early June, did that give an extra 2 years of new for old or just the remaining time of the 2 years you will have owned the bike, eg 4 weeks?
    #16
  17. Happy Snapper

    Happy Snapper GOMOB.

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    Just the remaining time. But who rings their insurance company one month before renewal is due and renews?

    We will see what happens.

    They are not the cheapest, but to date have been good. Problem is your claim is handled by the Suncorp group. In fact once when I rang about a claim the girl answered Suncorp. The QLD Manager of Shannons is a good mate of mine. (Currently on sick leave). He used to work for me 45 years ago. He can only make suggestions.. all out of his hands as it is handled by the central polit bureau!
    #17
  18. Dave Ward

    Dave Ward I don't even know where the box is.

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    Geez, lucky you had crashbars fitted, could have been serious engine damage without 'em...
    #18
  19. motoxfox

    motoxfox Been here awhile

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    First off Good news your ok H.S. !

    1/ your claim is against the other parties insurer not yours
    2/ IF the insurer choose not to return bike to 'as it was' then it is legal precedence
    that bike must be 'replaced' with near as replacement.
    Of course Claims Manager are Pro's at minimising the claim value.
    And claimants are meer amateurs

    for what its worth = 3 times in about a 6 wk period I was nearly cleaned up in T junctions.
    each time claimed they didnt see me. last time was a bus driver.

    GL
    #19
  20. Johns-Bikes

    Johns-Bikes Farkling the T7 Supporter

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    Timely, hope you have a win @Happy Snapper, and mend well and fast. Did the silly witch get pinged for neg driving?

    I’m about to insure new T7, only the 2nd ever brand new bike I’ve owned. So will take a hard look at the PDS most likely with QBE, always been good, absolutely nailed Shannons on price a few times and the one claim I had was well handled years ago.

    cheers John
    #20