Page 19 Advertisements Column 1

Press, 9 April 1980, Page 19

SIMU NEWSLETTER TO MEMBERS Across the Tasman The Australian insurance market is very competitive •indeed at this time and in fact one might say overcompetitive. There are 158 insurance companies operating in Australia and the competition is fierce and even reckless which on the face ofit should be of advantage to the insuring public. This in fact is not so. Unlike most industries, the insurance industry is selling only a promise to perform in the future and serious ratecutting can inhibit the ability to provide that service at the time that it matters. Unfortunately too. some of the traditional insurers who have stood the test of time are finding the current conditions too tough in the face of competition which is more sales orientated than insurance orientated. Parts Recovery SIMU Motor Services Limited Christchurch has recently opened a parts recovery division v/itii the object of making available good quality parts forthe repair of vehicles where these may not otherwise be available. The parts recovery division will therefore assist in getting our insured vehicles back on the road with the minimum of delay. Written-off vehicles are being purchased, stripped, racked and catalogued and emphasis is being placed on the quality of panel and mechanical parts. Parts are also available to the public. Market Value From enquiries we receive from time to time it seems that there are still some people who do not clearly understand the ’’market value” type of rnotorvehicie policy. We adopted it many years ago because we believe it gives the owner the best type of protection he can have. Under our previous type of policy where there was a nominated sum insured the amount stated was simply the maximum amount which could be recovered under the policy in the event of the vehicle being totally destroyed. If it had been worth less than that figure the payment would be only for the actual value of the vehicle, while if it had been worth considerably more than , the nominated sum the payment would be restricted to the nominated sum and the owner would be left to bear the balance of the loss. Under the “market value” type policy the premium is rated on what is appropriate for the average make and model of the particular vehicle and if it is damaged beyond repair or’stolen and not recovered, the owner receives in compensation the actual amount it was worth on the market at the time. This value can be determined with surprising accuracy and assures much more realistic protection.