Insurer refuses to allow vat for motorcycle theft

[rossowheels]

Hi

 

I recently had the misfortune of having my new motorcycle stolen. I made a claim which has been settled for a total loss. I was surprised to hear that the insurer (RSA) discounted the settlement figure by the amount of VAT I paid. I bought it new in Jan 2010 and had to pay VAT of £1,200 approx so it seems ridiculous that they have this attitude when I have had to go out and buy another new bike and pay the VAT for it again. Does anyone have any experience of this? Can I reclaim the VAT from HM Revenue and Customs? It does not seem fair to me that I have suffered a huge loss and the only people to have benefited are the thieves and the government.

 

Neil

[unclebulgaria67]

Neil

 

As far as I am aware you are covered for the market value, so why they are deducting VAT, I have no idea.

 

Ask them about this, as if this was a purchase by you, you would have had to pay the VAT and I am not aware of a way of reclaiming this.

 

They must think the bike was purchased by a business.

[GuidoT]

You should get the VAT from the insurers, no chance from HMRC.

 

It may help to send your receipt to insurers that clearly shows the VAT.

 

Insurers maybe thinking no VAT, as second hand motor vehicles do not attract VAT.

[Mwynci]

They are not making sense, if you paid vat, your not VAT registered, any settlement should be with VAT.

They are just being useless, allow them the chance to rectify and then if nothing go through their complaints proceedure explaining that by not providing the correct settlement they are stopping you from purchasing a new bike and will be claiming £10.00 per day (this is the average) loss of use or transport costs, any loss of earnigns, inconvenience for your loss of enjoyment due to their delays etc.