QUESTION: I bought a new BMW X5 for $7 million a few weeks ago. A warning light came on while I was driving. The manual stated that it should be taken in to the dealers. They said the problem was minor. It was caused by a blown fuse. Also, that I could continue to drive it. I refused. The handbook indicated the problem was serious. I left the vehicle with the dealers. Many weeks have passed and my vehicle has still not been fixed. It is insured comprehensively. Can I file a claim to repair the damage? Will the policy pay for loss of use?
G. W., Kingston 6.
Answer: I empathise with you. You have spent your well-earned, lotto-sized bucks some persons may add and, instead of getting the ultimate driving [SUV] machine, you end up with the post-purchase dissonance syndrome. Your vehicle's insurance coverage cannot solve this problem. The real culprits are the agents who sold the vehicle. Their service stinks. Boo to them!
New vehicles are sold with warranties from the makers. The cost is included in vehicle prices. Warranties run for a fixed periods or x thousand miles (or kilometres), whichever occurs first.
These are called bumper-to-bumper warranties. They cover major parts such as the engine and transmission. Wear and tear items such as brakes, brake linings, tyres, fan belts and bulbs are often excluded. Makers pay dealers for the parts and labour charges for fixing warranty repairs. This sounds like insurance to me.
Your dealer's service provider was less than honest. He did not tell you the entire story. In the old days, even less-than-ultimate driving machines were sold with spare fuses. If one blew it was changed in a jiffy. Today's models with many high-tech gizmos are fitted like computers with microchips.
Sometimes these parts fail. My sense is that the dealers have exhausted their supply. For some reason, they appear unwilling to ask the manufacturers to FedEx the spare parts for your vehicle. Either this, or very bad management is at the root of the problem. Go to the 'top of the food chain' at the dealer. Get some answers and, more importantly, quality service instead of the 'dissing' you have received.
Your losses and inconvenience are not covered by insurance. Motor policies and vehicle warranties have many things in common. They cover only certain types of losses. In the case of the so-called 'comprehensive' policy, damage to the vehicle is very limited.
Coverage applies when the vehicle suffers damage resulting from collision, overturning, fire, explosion, hurricane, earthquake or flood. Damage arising from theft is also included. The failure of electrical and electronic parts like fuses and chips is usually excluded.
While some insurers pay for the cost of alternative transportation [loss of use] under their comprehensive policies, this benefit is always triggered by a collision-damage type claims. In your case, since there is no coverage for the 'blown fuse', the loss of use expenses will not be paid by your insurers.
Contact the dealer's CEO. Demand a replacement vehicle. Even though I have not read your vehicle warranty, I am sure that they have a duty to replace the defective parts. After all, vendors in Coronation Market, other 'bend-down plazas' or insurance companies, would have treated you with more respect.
Cedric E. Stephens provides independent information and advice about the management of risks and insurance. If you need free information or
counsel to help you solve a problem write to The Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com
