Question: I bought my first car, a 2003 Mitsubishi Lancer, last March. I paid $900,000 for it. The funds came from my savings and a credit union loan. Six weeks ago I had an accident. I was on my way home from Ocho Rios. The other car overtook mine and then braked suddenly. This was to avoid hitting a truck going in the opposite direction. I crashed into its back and suffered two broken ribs. My car was badly damaged and will be a write-off. I have now learnt that the other car was not insured. I am unlikely to recover my medical costs, in excess [$30,000], loss of use and other expenses. Can you do anything to help?
- S.A.C., Portmore, St. Catherine.
Answer: If the driver that carelessly overtook your car is not insured I will be unable to help you. The best I can do is suggest that you find out if the owner/driver is a "man of straw." If this turns out to be so your chances of recovery will be nil. On the other hand, if he has resources sue him. This is giving it to you "straight up." That said, I can use your case to join the debate about uninsured motorists which recently reached the Upper House. Hopefully, it can help solve the problem that has affected many persons like you every day for a long time. This newspaper reported that Senator Arthur Williams [JLP] called on government to take "decisive action" to bring "the high rate of uninsured motor vehicles" under control.
The insurance company lobby, JAGIC, he stated, has been considering the problem and was "in favour of the introduction of the British sticker system." Exactly what the "system" is the report gave no details. Mr. Williams said that the cost of [implementing] the stickers would be borne by insurers. What is required, the Senator stated, "is for Parliament to make the appropriate amendments to the laws to give effect to such a proposal."
Mr. Williams should be congratulated for bringing this matter to the Senate. In my opinion, however, the solution to the problem of uninsured motorists is far more complex than either he or JAGIC has made out. "The sticker system" will bring no relief to road accident victims where motorists are uninsured. This is because "the British" rely on another mechanism to provide reparations to victims.
Innocent victims of negligent untraced or uninsured motorists in the UK get compensation from the Motor Insurers' Bureau. This system has been in force for nearly 60 years. The bureau was set up in 1946 as a company limited by guarantee. Its purpose was the "entering into agreements with the government to compensate the victims of negligent uninsured and untraced motorists." Every company that provides motor insurance is obliged by virtue of the Road Traffic Act 1988, to be a member of MIB and to contribute to its funding. The moneys paid to victims are, in my opinion, ultimately an indirect form of taxation on consumers who buy motor insurance. So, "the British sticker system," whatever it entails, operates in a climate where victims of road accidents can get compensation where they suffer damage at the hands of negligent, uninsured and untraced motorists. Since last November, the scheme was extended to cover legal costs incurred in making claims against uninsured motorists.
Uninsured motorists pose problems around the world. In California lawmakers suggested measures to prevent uninsured motorists from recovering damages when they had claims against insured drivers. In other states and Canadian provinces consumers can buy insurance against uninsured drivers. This is an extra to their motor policies. It allows them to file claims under their own policies when they have an accident with an uninsured vehicle/motorist.
There are no easy answers to this problem. In the long run it will be up to our lawmakers to decide who pays for the negligence of the reported 30 per cent of motorists who are uninsured. Currently, these costs are borne wholly by victims. In other jurisdictions the society at large picks up the tab. Will lawmakers bell the cat, or will they be side-tracked by the stickers?
Cedric E. Stephens provides impartial advice on risks and insurance. If you need free information or advice to solve a problem, write to The Financial Editor or, contact Mr. Stephens directly at aegis@cwjamaica.com
