Question: A Toyota Noah slammed into the rear of my car last September. The driver, who was NOT the owner, accepted liability. He said that he did not have his licence with him but showed me a national ID and TRN card. He also said that I should not report the accident to my insurer. He would fix my car. However, I made reports to the Matilda's Corner Police and my insurance brokers. The loss adjusters approved the $94,135 repair estimate. That amount excluded expenses for loss of use. Insurers settled my claim for $53,177.00 on December 8. The brokers said the third party's insurers would make another payment of $50,000 14-21 days later. This was due to a "knock and knock" agreement between them and my insurers. The Toyota's owner claims she was off the island in September. She was unaware that her vehicle was being driven. Her insurers are now refusing to pay. They are unable to say if the other driver had a valid licence. I cannot make contact with him. Can you help?
- M. A., Kingston.
Answer: I am very sorry. I cannot help you. The driver of the other vehicle is a crook. He led you down the proverbial 'garden path.' Now, nearly six months after the accident, it is very unlikely that his words will be converted into cash without the threat of a very 'big stick.' Are you prepared to use it to strike a blow in the hope of obtaining recovery or, are you willing to write off the $50,000 and walk away?
Your accident has many of the signs of 'the tek wey game' which occurs on our roads every day. Motorists, mainly men, fail to exercise care while driving. They cause accidents. Those collisions cause injury or damage the property of others. The architects of the accidents accept the blame, sometimes. False documents are submitted to the victims or important papers cannot be found. Statements made to the police, if such reports are made at all, bear no relation to the truth. As a result, the victims of their carelessness end up poorer and angry. This happens nine times out of ten.
THE KNOCK FOR KNOCK AGREEMENT EXPLAINED:
The Knock-for-Knock Agreement is a no-fault pact between some companies that sell motor insurance. Where the vehicles of members collide each insurer pays for their own loss. This is irrespective of which vehicle is at fault. The insurer of the vehicle that caused the accident pays the excess and other uninsured expenses of the innocent party. The theory behind the agreement is that it reduces costs between insurers. Insurance buyers also benefit from lower premiums. In your case, the third party's insurers should have paid your excess and loss of use expenses.
WAS THE THIRD PARTY INSURERS LIABLE?
The main triggers to coverage under the third party's policy are the driver at the time of the accident who should (a) have had the owner's permission and (b) have the appropriate driver's licence. My suspicion is that this information is at the centre of the scam. The Toyota's owner and driver, who reside at the same address, appear to be engaged in a plot where you end up the loser and them winners. The owner's insurers refuse to pay while the two crooks live to 'tief' another day.
SHOULD THE BIG STICK BE WIELDED?
Do not give up without a fight. I suggest that you hire the services of a firm of private investigators. Ask them to carry out discreet investigation about the couple. Particular attention should be paid to their relationship, sources of income and financial and other resources. Once you have obtained this information discuss the matter with your legal adviser. Look at the pros and cons of filing a suit against them. Speak with the police. Chances are, if you are lucky, they may be frightened into paying you on the threat of a well-crafted demand letter from an attorney.
Good luck!
Cedric E. Stephens provides independent information and advice about the management of risks and insurance. If you need free information or counsel to help you solve a problem write to The Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com
