QLD Dealing with a mechanics business insurance

[Francine]

Hello. I was having my car serviced recently and due to a fault by the mechanic my engine has seized. He is going through his business insurance to get it fixed, but their solution is to drop in a second hand engine that is not even from the same car as mine. Same brand, different make.

I don't want an older second hand engine as we don't know any of the history behind the engine.

How do I make sure I get a new engine.

 

[Zerojay]

You are not entitled to a new engine unless your car is new. The settlement of a liability matter is to fairly compensate you for your financial loss. For example if your 10 year old Corolla is written off in an accident and the other driver is at fault, he owes you the market value of a 10 year old Corolla less any salvage value, not the cost of a brand new Corolla. The same principle applies to replacement of the engine. Note that a reconditioned engine comes with a Warranty. If you are not happy with this you can opt to take the cost as a cash settlement and make up the difference with the cost of new engine replacement yourself.

I do not give legal advice, just my opinion based on working for an insurance company for over 20 years.

 

[Francine]

Hi Zero jay.
We understand that, but the insurance company simply want to drop in an engine that is not even suited to our vehicle so are trying to find a mechanic to modify the engine and our car to make it suit. Surely that is not acceptable.
Using your example, they want to drop in a Kluger 4cylinder engine into a Prado 6cylinder engine.

 

[Francine]

Sorry should add, finding a second hand engine that is similar to mine is very hard. My car is only 4yo and it is not a big selling model so few second hand engines. The engine they have found is 10 years old. Not really like for like.

 

[Zerojay]

Agree you should be entitled to fair compensation and a 10 year old different motor is not acceptable. See if you can get an estimate for replacement of your motor like for like and demand a cash settlement for the amount of this estimate perhaps.