Cycle to work scheme, but bike stollen

mariat

My son bought a £500 bike through the cycle to work scheme, and the payments have just started to be taken from his bank account. Problem is, the bike was stolen last week, and although he made sure to include his bike in with his house insurance, his insurers are now saying they wont pay out on hire purchase agreements. He will still have to complete the bike's payments regardless of the fact that it has been stolen, so why won't the insurance company pay up? Is there anything he can do about this?

wealdroam

Probably best asked on the insurance board.

mariat

Will do, thanks.

Mupette

my son had his bike stolen just before christmas, its was a cycle to work scheme too.

Just have to pay i am afraid, same boat here

McKneff

I don't understand why they wont pay up and then you use the money to pay off the bike ??

marvin

McKneff wrote: »

I don't understand why they wont pay up and then you use the money to pay off the bike ??

Insurance Companies tend not to give cash these days but replace with some kind of voucher system for their preferred supplier. No doubt they get the kick back like I used to negotiate with suppliers on discounts if I had to buy something that was being paid for from insurance.

Still can't see why they can't simply get insurance company to replace bike and continue the payments.

visidigi

You don't actually own the bike at the end. So presumably the bike has to be the same as the one the company providing under the certificate supply. Because your fundamentally 'lease' the bike there must be some issue with the insurance covering it...

neilmcl

McKneff wrote: »

I don't understand why they wont pay up and then you use the money to pay off the bike ??

Because the OP doesn't own the bike, he effectively hires it from his employer. The bicycle doesn't become theirs until the final balance has been paid off which is why standard household insurance won't cover it.

harrys_dad

neilmcl wrote: »

Because the OP doesn't own the bike, he effectively hires it from his employer. The bicycle doesn't become theirs until the final balance has been paid off which is why standard household insurance won't cover it.

If the bike technically belongs to the employer then maybe it is covered by their insurance?

neilmcl

harrys_dad wrote: »

If the bike technically belongs to the employer then maybe it is covered by their insurance?

I'd very much doubt it.

Sponge

This is interesting. I nearly bought a bike on this scheme, but went a different route. Had I done so, I'd have assumed my bike was covered by my home contents policy and not clarified the matter. Afterall, the advice from the scheme is to have the bike insured and as far as I would've thought, it would be. Their website doesn't mention the possibility that 'normal' policies won't actually pay out.

The schemes have been going on for many years, how come this issue isn't highlighted in their documentation? Just a small note in a FAQ to help customers. It must have happened countless times.