Travelers Insurance No Inherent Diminution of Value Payout Class Action

One of the things offered by the Standard Fire Insurance Company, which does business as Travelers Insurance Company, is auto insurance. But this class action alleges that Travelers refuses to make payouts for third-party claimants after an accident for the vehicle’s inherent diminution in value (IDV).

The plaintiff in this case, Mary Harrington, was in an accident on November 10, 2019 with a Travelers insured, Juan Morfe in which Harrison’s vehicle was damaged. His coverage was under a Massachusetts Standard Auto Policy, which the complaint claims “included indemnity benefits available to pay for third-party property damage.” Harrington thus made a claim to Travelers for the property damage to her vehicle.

The complaint alleges that Travelers found that Morfe was liable for the damage and that “Harrington’s car was appraised by his first party insurance carrier” and that Harrington gave Travelers all the information necessary to adjust her claim for property damage.

The complaint alleges, “A vehicle that has been involved in a collision and has suffered damage (even if subsequently repaired” is worth less in the resale market than a comparable vehicle that has not suffered such damage,” which the complaint says “is known as IDV or diminution in value.” The complaint alleges that the Massachusetts Supreme Court has ruled that “Part 4 of the Standard Massachusetts Automobile Policy affords coverage for third-party IDV losses.”

However, the complaint alleges that Travelers did not provide her with any consideration for the IDV her vehicle had suffered.

The complaint claims that Travelers has violated Massachusetts law as well as the terms of its own policy by refusing to make this payment, and it also claims that the company has done the same with other third-party claimants.

The class for this action is all individual claimants who

• Suffered a property damage loss as a result of a Travelers’ Insured or Travelers’ Insured vehicle driver;
• Where Travelers determined that its insured or insured vehicle driver was legally liable for the property damage loss to the claimant’s automobile;
• Where Travelers has already paid the third-party property damage claim, either to the claimant, the repair shop or the subrogating insurer (or other person or entity);
• Where the claimant vehicle suffered structural damage as a result of the collision or the cost to repair the claimant vehicle was in an amount in excess of $1,000.00; and
• Travelers has not paid said claimant IDV damages associated with the subject loss.

Excluded from the class are all individuals who presently have a civil action pending against Travelers about the subject dispute or who had a leased vehicle at the time of the subject collision.

Article Type: Lawsuit
Topic: Insurance
Tags: Auto Insurance, Breach of Contract, Incomplete payment of benefits due, Inherent Diminution of Value, Insurance