How do we recover costs for the community?

The two ways in which we try to recover claim costs and keep the collective’s shares down are:

Salvaging and Upcycling Parts

When we receive a claim, we try our best to get you back on the bike as soon as possible by sourcing replacement parts and bikes super fast. We could just stop there. However, some damaged parts can actually be salvaged. We work with several partners who buy old bike parts and upcycle them.

Next we process the returns and give the lion's share back to the collective as savings off of the next bill.

Subrogation

This one is a bit more complex. When one of our cyclists’ gear is damaged by a third party, for example in a collision with a car that wasn’t their fault, rather than asking our member to take this up with the driver's insurers, we would pay our member’s claim and take on the responsibility of going after the driver ourselves to recover the cost of the claim.

When we recover money in this way, we process the returns and give the majority back to the collective as savings for the next bill.

All charges, discounts and promotions explained

How Laka bills

The Laka bill is retrospective - Laka is different to other insurers. We believe in making insurance fair, not fixed - enabling you to pay for what's needed, not what's expected.

To enable our model of insurance, we need to bill retrospectively, at the end of the month for the previous month's cover. Not upfront. For example: The bill you receive on the 1st of April is for active policies you held in March.

Note: Our Liability cover via Laka Club is not billed in this way. This is a flat fee of £1.50, and is separate from your bike insurance. You can manage it from your account.

For a detailed look at the we process charges, discounts, and promotions in the bill, read our quick glossary below:

Share of Claims

  • Your share of claims is based on the total cost of claims and fulfilment that have occurred in the previous month, split proportionally across the collective.
  • Your proportion is calculated based on several factors, including the value of your gear, type of gear and the package you are on.
  • We calculate your share on a per day active basis. If you are not insured for a full month, for example if you have just joined or cancelled/paused your policy, you will pay for the days you had an active policy. Fair and square.
  • For example: If you cancel on the 3rd of the month, you will get your final statement (for 3 days of cover) on the 1st of the next month.

Laka Fees

This is how we make money and keep our wheels spinning. Our fees are 20% on top of the claims in the previous month. For example, the bill you receive in May contains our fees for your share in May.

IPT

Insurance Premium Tax (IPT) is a tax on general insurance premiums.

The standard rate is 12% and unfortunately, we have to add it in to your quote - it’s literally the law (it works in a similar way to VAT). When you get your quote on the Laka.co.uk page, we've already factored it in.

Recovered Costs

The two ways in which we try to recover claim costs and keep the collective’s shares down are:

Salvaging and Upcycling Parts

When we receive a claim, we try our best to get you back on the bike as soon as possible by sourcing replacement parts and bikes super fast. We could just stop there. However, some damaged parts can actually be salvaged. We work with several partners who buy old bike parts and upcycle them.

Next, we process the returns and give the lion's share back to the collective as savings off of the next bill.

Subrogation

This one is a bit more complex. When one of our cyclists’ gear is damaged by a third party, for example in a collision with a car that wasn’t their fault, rather than asking our member to take this up with the driver's insurers, we would pay our member’s claim and take on the responsibility of going after the driver ourselves to recover the cost of the claim.

When we recover money in this way, we process the returns and give the majority back to the collective as savings for the next bill.

Days Free

The number of free days remaining on your Laka insurance subscription. This applies on a per-product basis.

Credit

The amount of remaining credit that remains on your account. This applies on a per-product basis. Credit can be earned in a number of ways, including referring friends and participating in user research.

Promo Discount

If you signed up with a percentage discount this is where you’ll see how much you have saved each month. This applies on a per-product basis.

Multi Bike Discount

You can only ride one bike at once! Insure your family's bikes and save. This is the money you save each month from having multiple bikes on your policy. Remember every additional bike you add to your policy is charged at 50% of the bike value. Discount applies to lower-value bikes.