The Market Value is not determined by an Insurance Company - The Law defines the Market Value as shown below:
- The case of Spencer v The Commonwealth of Australia (1907) is the origin of the modern meaning of market value, which was defined as: The estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein each party had acted knowledgeably, prudently and without compulsion.
- A determination by General Member JA Ringrose in the case of Rofail v Volkswagen Group Australia Pty Ltd & Anor on 4 March, 2020 in the Consumer and Commercial Division of NCAT found as follows:
The market value of the applicant’s vehicle has been assessed by Mr Kannen who has the qualifications to determine that value.
Having regard to the purpose of the Australian Consumer Legislation being the protection of consumer transactions it is appropriate to apply the principles enunciated by the District Court of NSW in Burton v Chad One Pty Ltd (supra) and provide a purposive, fair, large and liberal interpretation that is beneficial to the consumer with exemptions and limitations being narrowly construed in favour of the consumer.
Applying these interpretations the Tribunal is satisfied that a market value as assessed by the applicant’s expert should be applied rather than a dealer’s trade in figure which would invariably be a lesser amount enabling a dealer to sell the vehicle on the marketplace at a profit.