I really cannot understand what this Declared Value means.
I have purchased a brand new bike and the original value was $8000. With all the charges, (Freight, GST, extra guarantee) etc, it came to a total of about $11500 (Not including any gear or anything extra). Now I setup a personal loan of 6 years that I will need to be paying monthly through yahama and HSBC. My insurance broker asked me what is the declared value of my bike, so I told him $8000 (excluding all GST, freight etc). But I had thought that if you have a personal loan and something happens to your bike, they take over and clear up the loan. So does this mean that if my bike gets stolen for example:
a) I will end owing $3000+ to the bank and they will re-imburse me the Declared Value? Am I supposed to Declare my balance that I owe to the bank?
b) Check their book or Buy&Sell guides and give me a price like $5000, so I will end up owing $5000+ to the bank
c) Pay off my personal loan?
What do you think ICBC does in this case?