Insurance Helpline With cedric Stephens

But third-party coverage limits insurer obligations to motor victims

Question: I was involved in a five-vehicle accident. The driver of the overtaking vehicle, on seeing an oncoming vehicle, swerved left and hit my car's right rear fender.

Other vehicles ran into the back of that vehicle causing it to hit mine again.

The police were quickly on the scene. They took eyewitness reports.

Three of the persons involved - including the driver who caused the accident - are insured with one company. My vehicle has a third-party policy.

The insurance company told me to get reports from an assessor and the police. They also said they would be claiming against the other person's policy. To date, I have not heard anything about my claim or if the accident was reported. My insurers quoted an exorbitant amount to insure my new vehicle. They say the premium will be reduced when the claim has been settled. Should I be penalised when I am not at fault?

- N.W., Kingston 5.

Answer: Poor overtaking is a major cause of accidents. Police figures say one out of every 10 of the 7,900 accidents for which the causes were known in 2003, was due to this reason.

Poor passing and improper lane changing accounted for a big part of the $6 billion bill for motor claims during 2006.

Insurers and their employees should, therefore, be experts in deciding who the good and the bad drivers are in accidents like yours. Do not pay the extra premium.

Find an insurer that will treat you fairly. One that recognises that you were not to blame. Had the other driver not attempted to pass a line of vehicles, this accident would not have occurred.

basic driving principles

Drivers of overtaking vehicles have a duty to others. They should always ensure that it is safe before trying to pass other vehicles. Basic driving principles, courtesy of Google, say that overtaking involves a group of things: giving appropriate signals before and during the act of overtaking; obeying all existing road rules/codes (for example, not overtaking where there is an unbroken white line); and not creating risks to other road users. This includes vehicles being passed or those approaching from the other end.

Since the driver of the vehicle that hit your car was trying to overtake, it is evident that he broke at least one of the rules. You, on the other hand, were a victim.

Third-party coverage is limited. It excludes collision damage. When your vehicle suffers damage in an accident (or is stolen), your insurers have no legal duty to repair it. Claims will only be paid where the property of others (third parties) is damaged, or where other persons suffer injury.

pay for losses

I agree with your insurer's decision to ask the other company to pay for the losses that you suffered.

You have choices. There are 12 companies that write motor insurance. The premium you pay should be set by market forces - not by someone who knows zilch about rear-end accidents.

Make sure that when you tell the other insurers about this mishap you describe clearly what happened and who was at fault; that you had a third-party policy and submitted a claim under the policy of the person who caused the accident.

Finally, if you do not feel up to the job of seeking quotations from other insurers, ask an insurance broker. Looking after the affairs of persons like yourself is, after all, part of their job.

Cedric E. Stephens provides independent information and advice about risk and insurance. For free information or counsel, email the Business Editor: business@gleanerjm.com, or Mr. Stephens: aegis@cwjamaica.com.