The machine was a grape harvesting platform. The unit is, a mobile tractor style machine used for the pruning, harvesting and spraying of grapevines. The machine has a high centre of gravity allowing it to straddle the rows of grapes to undertake work. The platform has the ability to “bolt on” various attachments depending upon the task.The drive system on the unit works via hydraulic oil pressure which drives hydraulic motors on each wheel. The engine rotates at more or less a constant speed, the diverting and reduction of oil flow to the hydraulic motors determines the speed of the machine on the road.

In this instance the harvester was travelling on rolling terrain (tarseal hill road) from one job to another. The machine was driving downhill on the northern side of the hill road where the machine suddenly stopped, completed a forward roll and capsized into the gully beside the road.

Damage to the unit was significant and the repair estimate exceeded the probable market value of $320,000.00 excluding GST. The recommendation was made to the Insurer that the machine be considered a total constructive loss.

Following claim acceptance for the claim, and during the process of survey to understand the reason for rollover, the Adjuster established that the oil flow/pressure to the front wheel/s hydraulic motors had for some reason stopped abruptly causing the machine to halt without command.The fault was clearly associated with the electrical/hydraulic systems operation. At that time many machines had a combination of both electrical/electronic controls during the change over to dedicated “fly by wire” electronic systems. Survey established an “errant command” drifting within the electrical/electronic system was the cause of the hydraulic motors failing/stopping on the front of the machine.

Following discussions with the Insurer the Adjuster endeavoured to minimise the “claim effects” for the machine owner. It was quickly established to “write off” the machine would seriously affect the ability of the company to provide harvesting service with the imminent grape harvesting season. Enquiries established there were no new/second hand machines available to replace the unit.

The claim was to settle for market value of $320,000 as the standard procedure. This would leave the owner to order or arrange a new/replacement which identified a delivery time estimated at several months.

However….

Our Adjuster, with his significant mechanical experience in particular that associated with warranty and servicing of machinery, contacted the manufacturer in Europe.

The Adjuster discussed the findings with the manufacturer and advised that we would in all probability, tender the damaged machine. The Adjuster also mentioned for the tender process disclosure to any prospective purchaser as to the cause/reason of the loss being an “errant command” migrating through the electronic/electrical system of the machine would be completed.

A number of calls subsequently ensued between France and the NZ dealer.

Soon after the Loss Adjuster was advised a replacement machine was “on the water” heading for New Zealand to replace the damaged unit with a new machine platform. The Adjuster gleaned from the New Zealand Dealer the potential brand damage caused by the publicity of unwanted technical information (errant command) was deemed likely to have had a significant effect on future sales! (The path the Adjuster intended to portray).

Given the above approach the Insurer received savings to the claim (estimated at $300,000). Owing to the surveys undertaken that manufacturer subsequently undertook a rework/service recall of this line of grape harvester which saw the 4 wheel drive capability of the machine on the front axles discontinued in road-use.

This recall work was to ensure that drive was only on the rear wheels, thereby avoiding future “forward roll situations” with the potential for machine damage and/or injuries.

Value added by our Adjuster: around $300,000
Cost to Insurer: significantly less than 1% of potential claim value
Fun had: Priceless!

Moral: Utilise the expertise of an experienced, competent Loss Adjuster and add real value to the management of your claims