Agreed Value vs Market Value — Commercial Motor NZ
How does each NZ commercial-motor insurer settle a total loss? Agreed value, market value, or new-replacement rules differ across NZI, QBE, AIG, Zurich, Delta, and Dual. Per-insurer verbatim quote from the ingested wording.
market_default: yes — 'we will pay you the market value of the insured vehicle'
agreed_available: yes — 'Section 1: Optional Policy Extensions – Agreed Value': 'In the event of a total loss covered under Section 1, we will pay the agreed value as specified in the schedule.'
total_loss_basis: If we consider the vehicle is a total loss, we will settle your claim by whichever of the following applies: a. we will pay you the market value of the insured vehicle; or b. if the insured vehicle is hired, rented, borrowed or loaned we will pay the market value of that vehicle to a maximum of $250,000; or c. we will replace the insured vehicle as outlined in 'Section 1: Automatic Extensions – New Replacement Vehicle'; or d. if the insured vehicle is leased, we will settle as outlined in 'Section 1: Automatic Extensions – Lease Value'; or e. If 'Section 1: Optional Policy Extensions – Agreed Value' applies, we will pay you in accordance with the terms of that extension.
sum_insured_indexation: no — not mentioned in wording
market_default: yes — default basis of settlement: 'pay the market value of the insured vehicle or the value stated in the vehicle declaration, whichever is the lesser'
agreed_available: yes — optional extension: 'Agreed Value — In the event of a total loss covered under Section 1, we will pay the amount specified in the schedule.'
total_loss_basis: We will, at our option, settle your claim for loss in one of the following ways: pay the market value of the insured vehicle or the value stated in the vehicle declaration, whichever is the lesser; or if any insured vehicle is subject to the Agreed Value option shown in the schedule then in the event of a total loss, we will pay the Agreed Value sum shown in the schedule; or if the insured vehicle is hired, rented, or borrowed or loaned we will pay the market value of that vehicle to a maximum of $250,000.
sum_insured_indexation: no — not mentioned in wording
market_default: yes — 'Our liability shall not exceed the market value for your vehicle.'
agreed_available: no — the wording does not reference agreed value; liability is capped at market value
total_loss_basis: total loss means where the vehicle is so damaged that the cost of repairs, plus the salvage value, exceeds the market value or the sum insured value of the vehicle (as specified in the schedule), taking into account relevant legislative requirements to this determination. Total loss includes a constructive total loss.
sum_insured_indexation: no — no indexation clause found in wording
DUAL New Zealand Commercial Motor Vehicle (08.23 v2)
market_default: yes — default basis of settlement references market value: 'Pay an amount equal to the market value of the insured vehicle or the amount stated in the vehicle declaration, whichever is the lesser'
agreed_available: yes — optional extension: 'In the event of a total loss covered under Section 1, we will pay the agreed value as specified in the schedule.'
total_loss_basis: Pay an amount equal to the market value of the insured vehicle or the amount stated in the vehicle declaration, whichever is the lesser, unless the insured vehicle is leased, in which case we will pay an amount equal to the market value or residual value of the insured vehicle, whichever is the greater.
sum_insured_indexation: no — no indexation clause found; policy requires insured to declare market value and states 'All values of insured vehicles stated in the vehicle declaration must represent, as nearly as possible, their market value.'
market_default: yes — 'pay the Market Value of the Insured Vehicle stated in the Vehicle Schedule or Declaration.'
agreed_available: yes — 'Where Your Schedule shows an Agreed Value We will pay the value as specified in the Schedule.'
total_loss_basis: if We consider the Insured Vehicle uneconomical to repair, We will at Our option replace it with a Vehicle of the same age, make and model and in similar condition; or pay the Market Value of the Insured Vehicle stated in the Vehicle Schedule or Declaration. Where Your Schedule shows an Agreed Value We will pay the value as specified in the Schedule.
sum_insured_indexation: no — no indexation provision found in the wording
Currently showing 5 of 6 FCIB-panel insurers — AIG / Zurich / Delta / Dual NZ wordings are pending broker-portal supply.
See the full panel.