By Cedric E. Stephens, Contributor
QUESTION: CAN you assist me to solve my problem? Three weeks ago I was in an accident on private premises. Another car hit mine when it had stopped. I foresaw the collision and actually waited for the impact. My car was written off. Its insurers have offered me $120,000 less an excess of $30,000 in settlement. The premium was based on a value of $180,000. The adjuster and insurer's claims officials say that I was at fault. They have based their decision on my statement and what the third party said. My lawyer agrees with them. I omitted from my statement, much to my chagrin, that I had come to a stop before my vehicle was hit. Does this prevent me from making any kind of claim? Have I lost my case?
- phillpa@hotmail.com
ANSWER: The adjuster, claims official and lawyer seem far more interested in pointing out the 'mote' in your eye than recognising the 'beam' in theirs! That this approach leaves you feeling 'shafted' and poorer, has escaped them. There are two logical conclusions to their argument. The first is that there is no such thing as fairness. It matters not that you were not the cause the collision. Secondly, your problem is insoluble.
Technology is part of the answer to your problem. Accident reconstruction technology can help you. It can prove that your car was stationary at the time of impact. The techniques, though new to Jamaica, have been practised in developed countries for years. It is sometimes called forensic engineering. Principles of mechanical engineering are its foundation. The physical properties of materials, forces, acceleration and energy - vehicle collision factors - are part of this field of study. Practitioners can find out about vehicle speeds, collision severity, the forces that cause physical damage and other collision related dynamics by careful study of the evidence after a crash. This type of analysis can either verify or question what drivers report.
Mike Webster of Advanced Insurance Adjusters is the local expert. I consulted him on your case. He seemed reasonably sure that, given the proper evidence, he could prove that your vehicle was stationary when it was hit. There are a few problems with going this route. It is a very expensive process. The cost would be slightly over $20,000. Is it economical to spend this sum to try to recover your loss of use, excess and the value of your no claims discount? The second problem is that the courts have not tested the technology. I understand however, that insurers are slowly beginning to recognise its value.
I would recommend that you try to convince your insurers to pay for the service. They stand to lose money too if you were at fault. On the other hand, if it were to be found that the third party caused the accident and was insured, they could recover the amount paid under your policy from his insurers. Spending $20,000 to save $90,000 seems to be a fair game from my point of view.
I do not agree with the insurer and the lawyer that your mistake cannot be corrected. I would explore making a written statement before a Justice of the Peace. The new statement would refer to the original statement about the accident on the claim form. It would also say that you mistakenly omitted to include the fact that your vehicle had come to stop before it was hit by the other vehicle. It should also state that the new statement should be incorporated into and form part of your original statement about the accident. A friendly lawyer could help you to draft the appropriate wording. Sign it before the JP and get him (or her) to sign it as well and then send it to your insurers.
Final words: Collision damage claims under motor policies are normally settled on the basis of pre-accident or market values. The prices for motorcars, like those for fruits, vegetables and currencies, go up and down to reflect market conditions. The estimate of value is used primarily to calculate the premium. The policy offers no guarantee that the estimate will be used to settle claims. I hope that my 'out of the box thinking' will help you to solve your problem. Please let me know the outcome
Cedric E. Stephens is an adviser on matters relating to risks and insurance. If you need free information, write to The Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com
