Reduce offer for Excess and Loss of Use

Hi Mr Tan

I see from your blog that you are answering reader's doubt on insurance issue. I like to get your advice on a case involving our company lorry.

Our lorry was travelling straight along Rochor Road. a car suddenly turn left from the extreme lane and hit our lorry's door.

Both vehicles are insured with X. The own damage claim (before GST) was settled.

There is a claim for loss damages and expenses. X gave us a release form to accept this as a full and final settlement, and we did.

X's lawyer later called for a mediation meeting between the drivers, and offered a lower sum to close the case.

We follow up with X's claims officer and were told when lawyer is involved, we can make a counter offer, but to insist on the full sum may mean incurring expenses to hire our own lawyer.

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REPLY:

The items that you are claiming fall under the category of "third party claim". You are making a third party claim against the other party on the basis that they are entirely at fault.

If there is no dispute on the fault, then the insurer should pay for this claim in full, and not try to negotiate a lower sum.

I suggest that you talk to the lawyer and ask for the reason for the reduced offer. You can also approach your insurer for their advice and assistance. They should render this assistance as part of their customer service.

If your insurer does not provide good service, you should look for a new insurer on your next renewal.

You also have the right to make a complaint against your insurer. The body to receive your claimant is the FiDREC (Financial Industry Dispute Resolution Center). Here is their website.