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Ought to A Pedal-Help E-bike Be Thought of A ‘Motor Automobile’?
An agent contacted me just lately a couple of denied declare beneath a 2011 ISO HO 00 06 apartment kind. The named insured’s $3,000 e-bike was stolen and the service denied the declare, citing the “motorized vehicle” exclusion. The query was whether or not a pedal-assist e-bike is a “motorized vehicle.”
The coverage defines “motorized vehicle” to be a “self-propelled” car. To me, which means a full-throttle car, not one that may be pedaled. A automobile is a motorized vehicle…it received’t run except the motor is engaged. A using mower is a motorized vehicle and might’t be operated with out the motor working. A bike can also’t function a car to move individuals or property except the motor is used. This e-bike could be operated with out partaking the motor.
If the e-bike could be operated beneath pedal energy or through motor-assisted pedaling, then I don’t imagine it’s a “motorized vehicle” as that time period is usually thought-about or meant beneath the coverage language. In fact, I may very well be mistaken, however at the very least there’s an argument for ambiguity and the insured often wins such argument.
March is Ethics Consciousness Month For the insurance coverage business
However, provided that March is Ethics Consciousness Week (sic) for the insurance coverage business, there’s one other angle to the declare denial. The correspondence from the insurer included this assertion: “For those who’d like us to think about an company lodging to make a one-time exception for this loss, please let me know.”
I don’t have an issue with company lodging per se, however I do if such declare funds come from declare reserves. I imagine that declare reserves needs to be used solely to pay COVERED claims. If the service doesn’t imagine the declare is roofed however is keen to pay it, that cost ought to come from one other account, perhaps a charitable one.
I’m unsure if that is an moral subject or a regulatory one. The insurer could be doing one thing good for THIS insured, however what about others that don’t get an “lodging”? Is that this discriminatory although well-intended?
What do you assume? Be happy to offer your opinion within the Feedback under.
P.S. For those who’d prefer to learn an article about e-bikes and insurance coverage, try this one from protection skilled David Thompson: What You Have to Know About E-Bikes! (johnsonstrategiesllc.com)
Invoice Wilson, CPCU, ARM, AIM, AAM
Founder at InsuranceCommentary.com
One of many premier insurance coverage educators in America on kind, protection, and technical points; Founder and director of the Massive “I” Digital College; Retired Assoc. VP of Training and Analysis from Impartial Insurance coverage Brokers & Brokers of America.
Copyright 2016-2024 by InsuranceCommentary.com. Reprinted with permission.
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