The insurance company is now refusing to payout as agreed.

Posted on:
3 Mar 2018
Posted by:
Molebalwa Kgomotso

I was involved in a motor vehicle accident in December 2016 with a security company’s vehicle (MBG Security) who acknowledged all fault and referred me to their insurance company (budget insurance) for a third-party claim. The claim process got underway in 2017 Feb/March.

The vehicle (2002 Audi A3) was taken in for an assessment to which it was declared a write off. I was given two options: a) take the market value and surrender the vehicle or, b) keep the vehicle and take the difference between the market and salvage value. I opted for option (a) market value in April.

Now the insurance company is going back on their offer and say they can give me an even less amount for the market value. They cite rust to the vehicle as the reason, which is nonsense because there’s non on the vehicle. And they are also citing depreciation only after just 10 months instead of the 12 months as per standard practice. Please help and advice.

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