MOTOR INSURANCE RULES

[Phil Cooper]

1. Around 65% of cars on SA roads are UNINSURED totally. So do NOT think, because you are a good driver, you need not insure, as "the other driver will pay when they are at fault".

2. NEVER drive an uninsured car. If it is an "old knocker" worth NOTHING, carry at LEAST Third Party cover - at most +- R700 a year premium.

3. If you are insured, and you have a TINY ding with another vehicle, with NO visible damage to EITHER vehicle, PUT IN A CLAIM "FOR ADVICE PURPOSES ONLY" with your insurer. This is an unbreakable rule.

4. If you decide NOT to put in a "for advice purposes only" claim, re-read rule 3. Then do it. Without fail.

5. If you are insured, and you are hit by a Third Party who says you should claim from their Insurer: do NOT. NEVER EVER. Claim from YOUR insurer, and then let THEM recover your loss.

6. 3. and 5. are unbreakable rules. And I do NOT say that lightly!

[Dave A]

A classic case in point starts right here.

[Blurock]

Phil, can you explain point 3 in more detail?

[msmoorad]

since this thread seems to be getting more attention than the other one
let me ask:
can an insurance company write off your vehicle if one of their clients has knocked into you but you are NOT insured/covered by them?
or do they have to pay for repairs to your vehicle-whatever the cost?

[Phil Cooper]

BLUROCK

You have 30 days in which to report a claim to your insurer. After that, they can decline it.

The number of times over the last decade I have clients who have a "tiny" accident, they say there is no visible damage - and around 9 months later they get a letter of demand from the other party's Insurer for the damage they caused (average these days around R17,800) to their client's car. If you don't pay they will take legal action against you.

Your insurers are not interested - you are outside the 30 days. So it is you vs "big money". And you can say WHAT YOU LIKE - there was no damage - it is your word against their client.

If you HAD put in the "record purposes" claim, you send the letter to your Insurers, and they will fight it out on your behalf.

msmoorad

If you can afford to fix your car, and do it, you can claim against them for the repairs.

BUT - if you get them to assess it, and they say it is a write off, they will offer you "cash in lieu" of the value of the vehicle for the value - and that leaves you high and dry.

[Dave S]

I have a question here, Just to give the scenario. You're involved in an accident and it's your fault, you're uninsured. The other party's insurance claims their damages from you.

1. Can the other party's insurance claim the full amount of the damage? I ask this as their client has obviously paid premiums that will cover the cost?
2. Can you offer to pay only the excess that their client would have to pay? This means they are not out of pocket when refunding their client?

This is just something that has always puzzled me.

[Phil Cooper]

Hi Dave

The Insurer WILL claim the full amount of the damage. Legally, you are responsible for it.

You can offer - but they won't accept it Legally, you are resonsible for 100% of the damage, and NOT just the excess.

[msmoorad]

and what if the guilty & uninsured person in unemployed?
will they write it off after investigating to confirm you really are unable to pay?

[Dave S]

Hi Dave

The Insurer WILL claim the full amount of the damage. Legally, you are responsible for it.

You can offer - but they won't accept it Legally, you are resonsible for 100% of the damage, and NOT just the excess.

Yes that was my take on it also, I asked the question as, when I was a young fella, I had an accident. I was uninsured, and the other guys insured suid me for R1300.00 (it was cheap to fix a car back then). I was still an apprentice and earning only R9.50/week, so I pleaded with the insurance company and they told me I could then pay his excess, which was R120.00. Like I said, tings was cheap back den...

[msmoorad]

UPDATE WITH REGARD TO MY ACCIDENT:

the lady who owns the company-the boss of the driver who knocked into me, phoned me on Sat
said she is in Durban for a few days & wants to see my vehicle

i gave her my address
she came to my house
saw the vehicle
asked me to explain what happened

then she said i must come to her Durban office
Mon(today)morn at 9-30

she asked her driver to come outside wit her 7 asked him where did he knock into me
and what damage was caused by him

that monkey said he knocked into me from behind ONLY
& the cracked rear glass & the bent body is not his doing/fault

the stupid lady then says im LYING
and that her driver is only liable for what damage he caused

i tried to explain that the cracked glass & damage to the drivers side are a result of the impact when her driver crashed into me


i told her that i was ted my time coming to see her
and i will see her in court.

she said that i WONT SEE HER IN COURT-ONLY HER DRIVER
AS ONLY HE IS LIABLE AS HE WAS DRIVING THE VEHICLE.

and she will not be paying anything
it will be him only


now
i want to know if this is possible:
company driver
company vehicle
working hours
vehicle owned/registered to lady who owns the company

and only the driver is liable in an accident?

she says she has gotten all her drivers to sign an agreement that THEY ALONE are responsible for any fines/damages etc they incur while working for her.
and furthermore, this guy is a contract worker...

my understanding is that the company & by extension, the owner herself is responsible.
and she can claim back from her employee- thats between them to sort out

CAN ANYONE CONFIRM WHAT WILL HAPPEN IN THIS CASE?

[Dave A]

Serve both the driver and the company.

I take it you haven't employed the services of a lawyer yet...

[flaker]

Any agreement between the Lady &/or company & its drivers is no concern of yours. That is their private arrangement. You go for the owner, be it the lady/company,served as well to the driver as Dave suggests. I take it that you have managed to get the name of the registered owner of the vehicle via the licensing offices.

[Justloadit]

Always take lots of pictures when you have an accident. There is no repudiating what the accident entailed.
Almost every cellphone has a camera, use it.

[msmoorad]

i have a lawyer

but was hoping to settle out of court- if possible

now, i see that wont be possible with this lady

hopefully she will end up paying much more through the court than what i would have been prepared to accept out of court.

[Dave S]

The way i see it, if she won't be reasonable and settle "out of court", then go to court and go for the jugular...