Bikers get insurance refundsDate: 11/3/2010 Nov. 3, 2010
By Katelyn Gendron
Assistant Editor
GREATER SPRINGFIELD -- Motorcycle owners statewide are finally getting what's owed to them. Six vehicle insurance companies are sending more than $17.5 million in refunds to motorcycle owners who were overcharged as far back as 2002, Attorney Gen. Martha Coakley announced Oct. 26.
Arbella Mutual, Hanover Insurance, Metropolitan P&C, Pilgrim Insurance, Plymouth Rock Assurance and Norfolk & Dedham have sent more than 5,400 refunds totaling as much as $6,554 to those in Hampden and Hampshire counties. Coakley's investigation, which began in 2008, has yielded $33.8 million in refunds from 12 insurance companies.
"We are pleased that these insurance companies will return $33.8 million in insurance premium overcharges to affected motorcycle owners throughout the state. Our office will continue to investigate other companies engaged in this type of behavior," Coakley said.
"The settlements relate to allegations that the insurers overcharged tens-of-thousands [of] Massachusetts motorcyclists by using inflated motorcycle values to calculate insurance premiums," according to Coakley.
David Hammarstr m, spokesperson for MetLife Corporate Communications, said the settlement was not "an admission of wrongdoing," however.
"Metropolitan Property and Casualty Insurance Company has entered into an agreement with the Massachusetts Attorney General's Office. This agreement concludes an investigation into past rating issues involving some types of motorcycle insurance," he stated.
"The company's agreement with the Attorney General's Office has been signed in lieu of litigation and recognizes the company's assistance and cooperation with the AG's Office during its investigation. The agreement does not constitute an admission of wrongdoing or noncompliance by the company.
"At no time was it Metropolitan Property and Casualty Insurance Company's intention to overcharge its customers," he continued.
Metropolitan P&C has issued approximately $3.5 million in refunds, the fourth highest amount of the 12 insurance companies that have reached settlements, according to the attorney general's office.
Safety Insurance has sent the largest total of refunds, approximately $7.4 million, followed by Arbella Mutual totaling $6.3 million, and Plymouth Rock and Pilgrim's refunds of $4.2 million.
"We are pleased to confirm that Arbella has reached agreement with the Attorney General's Office regarding premium refunds for a number of our present and former motorcycle insurers. As soon as we received confirmation of the individual refund amounts from the AG's Office last week, we began processing checks and we expect to have all refunds completed by the end of this month," Doug Bailey, spokesperson for Arbella Mutual, said.
Springfield motorcycle owners have received the largest number of refunds in Hampden County summing approximately $210,000, followed by those in Chicopee and Westfield, totaling about $135,000 and $100,000, respectively. Motorcycle owners in Agawam, East Longmeadow, Granby, Hampden, Holyoke, Longmeadow, South Hadley, Southwick, West Springfield and Wilbraham have also received refunds.
Several insurance companies still remain under investigation, according to Coakley.
To inquire about refund eligibility, visit Coakley's Motorcycle Insurance Refund Lookup Web Page at www.motorcycle.ago.state.ma.us.
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