Cedric Stephens, Contributor

Question: A JUTC bus damaged my car earlier this year. I was making a U-turn along Pechon Street. There was no sign that prohibited this. I was travelling in a northerly direction. I stopped to indicate that I intended to turn in the opposite direction (towards the waterfront). After seeing the bus in my rear view mirror, I waited on it to stop. The driver stopped very close to the rear of my vehicle. While I was in the act of turning, the driver moved. As a result, the right rear side of my vehicle was damaged. The bus was not. I filed a report with the police and JUTC. I did not make a report to my insurers. The bus company's insurers wrote me stating that I was at fault. Are my insurers likely to settle this claim without my knowledge? Will my premium be affected if this happens?

- uwiyute@gmail.com

Answer: Since you did not report the accident, your insurers are unlikely to pay one cent to JUTC. The contract between you and that company imposes a duty on you to give them notice with full particulars "in the event of any occurrence which may give rise to a claim."

Some contracts say the report should be filed "as soon as possible." Others have a 30-day limit. Either way, non-compliance gives insurers the right to avoid payment.

JUTC is its own motor insurer, according to my information. The insurer who wrote you is simply a 'front'. This means that they manage claims on behalf of the bus company. When claims are settled where bus drivers are at fault, the funds ultimately come from your pocket and mine because the company is operating at a loss.

My guess is that scores of letters like the one you got are routinely sent out daily by JUTC's front. The aim is to scare persons who may have claims against the bus company. In the jargon of the Iraqi war, this is called a pre-emptive strike.

REPLY TO JUTC 'INSURERS'

I suggest that you reply to the letter you received as follows:

"Dear Sirs,

I totally reject your allegations that I caused the motor accident which occurred on Pechon Street, Kingston, on - between the motor vehicle I was driving registered - and the public passenger vehicle owned and operated by JUTC, licenced -

The facts are:

1. When I first saw the bus, it was travelling behind my vehicle. I brought my vehicle to a stop.

2. The bus came to a stop very close behind mine.

3. I indicated that I intended to make a turn to the right.

4. While my vehicle was in the act of turning to the right the bus moved and damaged the right rear of my vehicle. The bus did not suffer any damage.

5. The accident would not have occurred but for the careless and negligent manner in which the bus was being operated.

6. The reports that I made to the police station and the offices of the JUTC on the day of the accident are consistent with the facts that I have listed in this letter."

If my analysis of the situation is correct, chances are that you will hear nothing further from the insurer on this matter. After all, given the manner in which these buses are driven, hundreds of new claims are reported each week. The claims staff of most insurance companies are said to be avid readers of this column. It is, therefore, possible that an employee of the bus company'sinsurer may decide to turn up the pressure on you instead of allowing the report of the incident to die naturally. In the unlikely event this were to happen, please feel free to contact me again.

Cedric E. Stephens provides independent information and advice about the management of risks and insurance. For free information or counsel, email: aegis@cwjamaica.com.