Tan Kin Lian's Blog: Inflated claim

Monday, June 07, 2010

Inflated claim

Many motorists have encountered this experience. The car in front stopped suddenly. The car at the bank knocked into the bumper. It was a small scratch. Both parties agreed not to file any claims.

Later, the motorist of the rear car received a claim, usually through a lawyer, for a sum that is way above the actual damages. It seemed that the damages have been inflated. If you do not settle the claim, the lawyer would file a legal suit and take you to court.

What would you do, if you received an exaggerated claim? Share your views here.

Tan Kin Lian

10 comments:

Chee Ming said...: I think the inflated sum involved the legal fee.

Caught between a rock and a hard place. How about demanding the bill from the workshop from the claimer? Since it's only the bumper that's been damaged, the claim should only be around the bumper.

How about the motorists involved in the accident take pictures of accident and put their words in black-and-white on the spot? If either side brings the case to court, then the photo and the black-and-white paper that both parties agreed upon will become evidences. Ah well, that's just my two cents worth.; June 07, 2010 1:36 PM
C H Yak said...: Maybe 20% was for the bumper repair, and 80% for the lawyer' fee ???

And if it was sent to a designated workshop & assessor, perhaps it is "anti-competition" and deserves a one million $ fine.; June 07, 2010 1:58 PM
Anonymous said...: Even the insuramce company give in so layman has no choice unless you have deep pocket and time to fight the injustice. Yes, justice cost money to be upheld.; June 07, 2010 2:15 PM
Tan Kin Lian said...: My advise is to reject the claim. Let the other party prove that you were responsible for the accident and that the damages were as serious as the extent that was claimed.

As there are no witnesses, it is one person's word against another person.

Furhtermore, there were no corresponding damage to your vehicle that is consisent with the damages on the other vehicle (assuming that the damage had been inflated).

However, to be on the safe side, it is better to take the photos of any accident and to send it to your insurance company, even if both parties agreed not to make any claim. With a mobile phone, many people can take the photo easily today.

Even if the photo is not so clear, the fact that it has been taken will deter the other party from making an exaggerated claim.; June 07, 2010 2:59 PM
Driver with courage said...: Let the legal process begin.
This is legal posturing.. have no fear if you believe you did nothing wrong or disagree with the amount of claim.

It will also cost the other party time and money.

Ignore all legal notice and let them apply to the courts to summon you. Even then, this does not mean you are guilty.

Do not admit anything
Do not agree to anything
Do not promise anything

I have experienced twice the legal threats.. both times I ignored them till they increased the threat with higher claims.
Eventually, they offered a settlement amount which was lower.

Armed with these letters, I engaged my own lawyer and began a counter suit.
Cost to me? $18,000 for an alleged claim of $3500. I suggested to the lawyer that I would donate his fees to charity in his name and that he clould claim from Inland Revenue twice the amount in tax.
He agreed and I have always kept him as my "traffic" lawyer on standby.

Do not fear bullies, counter them and put them in place. Do not fear the police either. They are the biggest bullies.; June 07, 2010 3:13 PM
Anonymous said...: It is advisable to find a witness and take picture. If no witness, make a simple statement and sign-off by both parties. Witness or a simple statement is even more important if involve with Tax and mini-bus/transport operators.; June 07, 2010 3:46 PM
Ape said...: I would have considered taking pictures and reporting it to my motor insurance Co. However, it seems to complicate the matter when No-Claims-Bonus comes into the picture. I assume many people would not report (especially if he's the one at fault) thinking that it is a small matter and can be settled easily with perhaps a couple of hundreds of repair cost. It makes matter quite difficult when we are not confident of our own insurance Co. in the sense we do not know how much of our interest is being taken care of by the insurance Co.

Overheard someone talking to the counter staff sometime back...
"So Mr XXX, you're saying you're not at fault and want to challenge the other's claim?"
"I donch noe ah... last time your co. settle for me... I donch know ah..."
"So you don't not want to challenge his claims?"
"I donch noe la... I come like that than he like that, who's right or wrong? Aiyah... you help me settle la"

My point is, does the insurance co. advise their client fully and clearly? I got the impression that the counter staff just wanted to close the case quickly and process it without really understanding the issues and impact it will have on his client.... just an opinion; June 07, 2010 4:09 PM
Anonymous said...: May I offer the following suggestions (from bitter experience) concerning photo-taking.

1. Always take photos
2. Always get the other driver's particulars
3. Always file an IDAC report within 24 hours
4. Always inform your insurance company

PHOTO-TAKING TIPS
------------------
- the overall position of the cars after the accident is important
- this is the big picture perspective
- very important when it comes to assigning blame and assessing credibility of the story
- ideally, photo is taken at least 10 feet away to give perspective

- close-up pictures of the damage is also important. But not as important as above big picture perspective; June 07, 2010 6:28 PM
Anonymous said...: Hi Mr. Tan,
what about I stop infront the traffic light station. the rear vehical suddent move & hit my station vehical. (Traffic light still in red !!!

And the driver pretent small dented & not amitt at his fault ??

So should I go to the 3 party claim on this matter !!; June 07, 2010 11:17 PM
Anonymous said...: I kiss the bumper of a Comfort Sonata Taxi previously with my old van. There is no visible damage to the bumper, but the front of my van was damaged. I took photo of the taxi rear then. I received the claims from the Taxi, which was highly inflated. I rejected the claim. But my insurance company was NTUC, which rules that I should pay out the claims. Talk about collusion... And the story didn't end here. Several months later, I received another claim for the personal injury fee by the taxi driver...; June 10, 2010 11:44 AM