You raise a really good point, and I absolutely did read Section 1. However, the valuation I offered at the time of purchase was a good faith valuation (which a value estimation of £1 would clearly not be), which I only later discovered was undervalued. Since I wasn't asking for anything that wasn't already in their policy, and there was no reference to them stating that the value estimated at time of taking out the policy being used as an ironclad maximum, I was completely within my rights to request the market valuation as per their policy document.
Motor vehicle insurance policies are typically made up of four documents the policy, the schedule, the certificate and the statement of fact. All four documents should be read in conjunction with each other as each has a bearing on the other.
What you're reading is their definition of 'Market Value' read a little further on and at 'Section 1 Loss of or damage to Your Motorcycle' (page7) limits the pay out to 'The most we will pay is the Market Value...' Now since within the policy schedule you've agreed with the insurers by acceptance a value of £5,000.00 that further limits the pay out to just that.
We all know the less you value an item at for insurance purposes the less the premium will cost. Lets look at an extreme example. What if you valued your motorcycle at £1! Would you still be expecting the insurance company to pay out £6,000.00+? I don't think so! The bottom line is under value your mo'cycle at your risk not the insurers.
National Treasure
I’ve just had them come back to me with a counter-offer of almost £5900. It’s still a few hundred quid lower than the previous valuations I was given (from my previous theft claim, that only settled AFTER the purchase of this vehicle), but it’s close enough that I’m prepared to accept it to have the matter resolved. So, having accepted it, I’ll be in the market for a new bike in the next couple of weeks, just as soon as the cheque clears 