I have just submitted a claim to the insurer on behalf of an insured for the loss of a notebook while he was on a business trip to Tanzania. The notebook worth about RM2,000/- was stolen from under his nose at his booth in a trade exhibition hall.
An offer was made to me to settle the claim for RM950/- (RM1,000/- limit for a notebook computer less Excess of RM50/-). The policy says it will pay up to RM5,000/- for loss or damage to personal luggage and personal effects but will not pay (a) the first RM50/- for each and every incident giving rise to a claim (b) more than RM500/- for every single article, pair or set other than notebook computer (c) more than RM1,000/- for notebook computer.
I would not accept the offer as the policy says it will pay up to RM1,000/- for notebook computer. The loss is RM2,000/- and the insured will have to bear the first RM50/- for each and every incident. Therefore, the nett loss is RM1,950/-. Since the policy sets a limit of not more than RM1,000/- for a notebook computer, I told the insurer it would only be fair to pay the claim at RM1,000/-. This is what the policy says - it will pay up to or not more than RM1,000/- for a notebook computer. A lay person reading the policy will say 'if I lose personal luggage and personal effects of a sum in excess of RM5,000/- (subject to single article limit and limit for notebook computer), I would be able to make a claim up to limit of RM5,000/-
The insurer is looking into the matter. I would like to have the expert opinion of members.
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