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declaring 'fake' dutiable value to VIC roads consequences

Discussion in 'Politics, Laws, Government & Insurance' at netrider.net.au started by cleanhands, Jul 24, 2009.

  1. If I buy a 250 for $6000 and declare that I've bought it for $4000 (private sale) - on Vic Roads rego transfer form - and then go on to insure this bike (which is valued @ $6k) will my insurance company look at what I've declared to Vic roads as its value and then only pay me the $4k in the event that it is totally destroyed?


     
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  2. Re: declaring 'fake' dutiable value to VIC roads consequence

    Nope.
    They pay out on either market or agreed value.
     
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  3. I don't think so, and for most policies it is irrelevant. The Bike is insured for a value that you and your insurer agree on, which may be completely different to what you paid for the bike.

    When you obtain a quote, if the value you paid for the bike is unacceptably low compared to the insured value, the insurer will just say " sorry, we won't insure you". It is probably a good idea to tell the insurer the actual amount you paid. Never tell an amount LESS than what you paid. That only advantages the insurer and disadvantages you.
     
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  4. Market value is just that - I don't think they'd go as far as to check the value listed on your rego.

    Anyway - you need a receipt from the seller to prove the paid value, in QLD anyway.
     
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  5. i went with agreed value on my bike, market value was 3k...
     
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  6. I seriously doubt that the insurance companies go looking for the rego transfer form. Can you imagine the amount of work it would be dealing with all that bureaucracy every time someone made a claim?

    What if you bought a bike with a RWC that was worth $4000, then decided that it could use a new paint job, better tires etc... and that bumped its insurable value up to $6000?

    What if you just happened to get a bargain from someone who didn't know the bikes real value?
     
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  7. You give VicRoads too much credit!! They dont even communicate with other state rego authorities (neither do any of them), let alone communicate with private insurance companies!
     
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  8. Maybe Vicroads is different but on the RTA site it states:

    So how will declaring a lower purchase price make any difference? Or don't they really check the market value of the bike?

    Adam
     
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  9. I've never had an insurance company question me about the information I gave to Vicroads, or ask to see the documentation. An oversight on their part probably, but market value is market value, usually.
    You might be able to get an agreed value policy that defines the value in advance.
    Just note that if Vicroads decide that the amount you declare is not accurate or believable, they will simply adjust it in their favour and charge you accordingly.
     
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  10. OK, Vicroads has a similar statement ...

    Kind of makes you wonder why they need to know what you paid for it then!

    Adam
     
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  11. Funny, I was just in Vicroads today changing over the rego on a car. I'm willing to bet they don't do much checking. The place is very busy and they just want to get through as many clients as quickly as possible. I declared the correct amount and showed her the receipt but she didn't even look at it, let alone take a copy. I didn't pay anything close to market value, either (never have :wink: ).
     
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  12. nah neither are connected. Although if you are going to adjust the amount you tell vicroads make it believeable ie not $3k for an 09 blade or anything rediculious.
     
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  13. No, market or agreed value.

    I paid $1700 for a bike worth 4K in 2007.

    Say you buy a old bike for $500 and you spend $10K restoring it, you dont think the insurance comapny will pay you out $500 initial purchase price do you?
     
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  14. They would certainly try. If you do this, keep your restoration reciepts
    (and logs of time worked) and photos, and inform your
    insurance company so they can tell you their requirements. Make sure
    you get a note on the policy.

    Or, organise "agreed value" insurance for $10,500.

    Because if it's stolen or burnt, where's your proof that it's worth
    more than the $500 you paid for it?
     
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  15. Its the transfer fee plus some percentage of what you pay for it. That's why they ask. That's what it was when I sold my VTR and I doubt it would have changed in 2.5 years.
     
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  16. You usually can organise two reciepts - one with you and the seller, and on the vicroads slip, put whatever amount you want. If you get caught, you'll just have to pay the difference, no penalties.

    Insurance and Rego are two completely independent things, if the insurance company has doubts, the most they'll likely do is check to see if it's registered properly. I'll bet 99% of the time they don't even do that.
     
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  17. +1 to izan508

    I recently paid $1,000 for a bike with a market value of $4000. I told the insurance company how much it cost and they insured for $4000 with no questions.

    Aside from that I would assume that privacy issues would stop Vicroads giving that sort of detail to an insurance company.
     
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  18. You're insuring it for what it's worth - not what it cost you. The insurance company couldn't care less if you paid $500 for a $5000 bike - or $10000 for a $5000 bike. In either case they'll insure it for the $5000 it's worth.

    The VicRoads value is another matter. Just be aware that they could ask for proof if it's way below the normal price.
     
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  19. Best way to do it is to POST in your paperwork, with whatever value you decide should be on it, with a cheque or money order made out to the correct value.

    If you're having trouble working out the value, give vicroads a call, they will tell you.

    If everything is in order, you should be fine.
     
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