26/10/2015
your car policy details from the outset
With motor vehicle insurance, to avoid a nasty surprise when you claim, you need to know how much you will be paid out if your insurance company decides to write off your vehicle. You also need to know the procedure your insurer requires you to follow in the event of an accident, because, if you don’t follow it, you could end up having to pay the towing and release costs out of your own pocket.
In another case, an insurance company unsuccessfully relied on a clause related to night-time parking arrangements to repudiate a claim for a theft that occurred during the day.
Mr H’s motorcycle was stolen from his front garden. His insurance company, Centriq, repudiated his claim on the grounds that he had failed to comply with the policy conditions, which required that the motorcycle must be parked inside a building at night and that the building must be properly locked. It said there was a further risk, because pedestrians walked through the property and the fence had many holes. It said it would not have insured the vehicle if it had known that the motorcycle would be parked in the front garden of Mr H’s residence, where it was visible and unsecured.
However, Mr H stated in his claim that the loss had occurred not at night but during the day, and he had discovered the loss on his return home from work in the afternoon.
He said he normally used his motorcycle to commute to and from work, but that morning his girlfriend had offered to take him to work. The insurer did not contest Mr H’s version of events.
The ombudsman found that, if Mr H’s version of events was accepted by the insurer as correct, then the motorcycle was not normally left at home during the day.
Significantly, the insurer had not proved that Mr H had been required to disclose his daytime parking arrangements on the odd occasion, “as this would be impractical”, the ombudsman said. The conditions relating to the vehicle being inside a properly locked building applied only to night-time parking.
He asked Centriq to settle the claim, which it agreed to do.
In a third motor-vehicle-related case, the ombudsman was unable to make a ruling because there was a dispute of fact.
Following a motor accident, Mr P claimed from his insurer, Budget Insurance, for the damage to his car. Budget repudiated the claim on the grounds that Mr P had failed to take due care and precautions to prevent or minimise loss or damage. It relied on a report by an expert in motor collision reconstruction.
The report stated that Mr P’s vehicle must have been travelling at between 110 and 120km/h for it to have sustained the damage it did. This was twice the 60km/h speed limit in the area. The insurer said this excessive speed amounted to recklessness.
Mr P disputed the findings of the expert’s report and, when given the opportunity by the ombudsman, provided his own expert report to support his view.
In the end, the ombudsman could not make a decision, because the case involved a dispute of fact. He closed the file, pointing out to Mr P that this matter would best be heard in court.
* Contact the the office of the Ombudsman for Short-term Insurance, Dennis Jooste, on 0860 726 890 or 011 726 8900, or email [email protected]. For more details, visit www.osti.co.za
BE CAREFUL WHO TOWS YOUR CAR
If you are in an accident and your car needs to be towed, be sure you know the procedure your insurer requires you to follow, the maximum it will pay for a tow, and whether the tow-truck operator who approaches you to tow away your car is authorised to do so.
Bertus Visser, the chief executive of distribution at PSG Insure, says that having your car towed can be a nightmare if you end up dealing with a dubious tow-truck company.
“On the scene of an accident, emotions can run high, and it’s easy to be misled by a tow-truck driver who seems kind and wants to help,” he says.
Visser offers the following tips to help you to make the right decisions if you are in an accident:
* Display a “Do not tow” sticker from the AA (if you are a member) or your insurance company on a window of your car. This is particularly useful if you are incapacitated in an accident. It will make sure that medics or police at the scene of the accident know to call your insurer.
* Immediately call your insurance company’s emergency number, if required, or other reliable sources for assistance. Having the right contact details in the car or on your cellphone will aid authorities if you are unconscious, Visser says.
* Never feel obliged to choose the first tow-truck driver who arrives on the scene, and be aware that not every one of them has your best interests at heart, he says.
Make sure to use an operator you trust, such as those registered with the United Towing Association of South Africa or the South African Towing and Recovery Association. Using an unregistered operator could be very costly and even result in your car being stolen – the police have identified some operators as part of a scam to steal cars, Visser says. Even when the tow-truck company is reputable, you need to record all its details.
* If the accident is serious, and particularly if people have been injured or killed, do not allow the vehicle to be moved until authorised to do so by the police.
* Before your vehicle is towed away, take photographs of the accident and remove any valuable personal belongings from the car, Visser says.
