Janet (not
her real name) was negligent in knocking down a pedestrian. She reported the
accident to her insurance company X promptly, as required by the policy, and X
had to handle the injury claim from the pedestrian.
Half a year
later, the Police issued an offer to Janet to pay a composition fine of $200 for
her careless driving. She accepted and paid the fine.
She was not
aware that she would have breached the a condition in the policy which required "Every
letter claim writ summons and process shall be notified or forwarded to the
Company immediately on receipt."
X paid a sum
of $30,000 as injury claim to the pedestrian and took legal action to recover
this payment from Janet, as she had breached the policy condition and was not
entitled to be covered by the policy. Janet had to
engage a lawyer to fight against the recovery of this sum by X.
8 comments:
Very surprised that Janet was ignorant about her Policy obligations, as the other party's Insurance Company would definitely claim against her own Insurance Company for compensation.
She must leave settlement entirely to her insular, and not take matters into her own hand.
Perhaps her insurer did not remind her in writing she should not take any action at all.
This also shows the Police was just as ignorant about insurance settlement procedures, confirming you can't trust those men in uniform any more.
You could only settle privately if both sides agree not to report to their respective insurer, confirmed and signed by both in black and white, backed by I/C particulars.
Bloody hell, the insurer really takes the technicality to the extreme.
How the hell people on the street knows the connection of police fine got to do with the third party claim?
Even there is such a connection which I doubt. The insurer should advice Janet to forward the fine to the insurer and close the case.
I guess it is a matter of timing.
Composition of fine for careless driving with the Police is for a "penal" offence.
The 3rd party claim is a "civil" case.
If Janet had compounded the fine, she had already admitted guilt to the "careless driving" charge. If this was before the civil case was filed, her Insurer had no chance to fight the "civil claim", and had to pay ... only a question of how much the quantum to pay.
A lawyer told me that payment of composition fine is not admission of liability.
I guess it depends whether personal "injury" is involved and how serious... and also the degree (if any) the third party is "contributory" to the accident.
Even the 3rd party is contributory to a minor extent ... and the accident is serious enough due to "reckless" driving with "injury", there will certainly be a "penal" punishment. I am sure composition of fine is an act admitting "guilt"... otherwise demerit points or even disqualification for a short period might be imposed by the judge.
The responsibility and liability for "neglience" in causing the injury and its extent is argued in the "civil" case to settle "compensation" part.
This is where I believe the timing counts to admission of responsibility.
Janet admitted that she was negligent. Being negligent is not a crime. By accepting the composition fine, she does not jeopardize insurer X's position. She may have technically failed to observe the policy condition, but it does not have any impact on liability. If she had told the insurer about the composition fine, can the insurer force her to deny liability? What if she is charged and found to be guilty?
What is this x company name? I will not buy insurance from this type of company is it axa?
Wat company is x ? I will not buy from them? Is it ntuc?
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