The answer to this question will come down to the basics of finding the facts and the contents of the policy contract between insurer and insured. This question was raised in a matter referred to the Ombudsman for short term insurance, and we would like to share this interesting example:
The Facts
On 4 September 2003, the insured was involved in a collision. 10 days later she was informed that an assessor had been instructed to assess the damages. The vehicle was at her home, but she was told to arrange for it to be taken one of the insurer’s preferred panel beaters and the insurer also confirmed to her that the towing costs would be paid.
Three days later she received a phone call from the insurer informing her that her claim had been rejected because of her failure to pay the premium payment falling due on 1 September 2003. A week later she went to collect the vehicle, and to recover it she was charged R1 880 release fees and a further amount of R250 to tow the vehicle back to her premises.
Decision by the Ombudsman
The Ombudsman agreed with the insurer that it was entitled to reject the claim based on the non-payment of the premium. In view of the undertaking which the insurer had given to the insured with regard to the towing charges however, the insurer was ultimately persuaded to make payment of the full amount of R2 130.
[Source: Ombudsman Newsletter: 04/04]
Advice to the insured car owner
The above example provides important lessons to the vehicle owner. We would like to provide a few suggestions to our vehicle owners:
- Towing and storage will incur costs – and someone has to foot the bill to compensate for these costs!
- Avoid assumptions with regards to financial liability.
- Always refer to the insurance policy and stipulations pertaining to towing and storage.
- When in doubt, contact the insurer and ask for written confirmation whether they will be responsible for payment of these costs.
- Keep correspondence of all communications in a safe place with your policy documentation.
Related posts:
- Can your car insurance claim be rejected because you are a bad driver?
- Car Insurance Claim could be rejected in failure to activate security requirements
- Car insurance claim can be rejected if vehicle tyres are not roadworthy!
- Can my car insurer cancel my policy if I claim too often?
- What is the causal link required before a car insurer can reject your claim?
- When do I notify the insurer of an accident claim?
- Innovative techniques for towing a vehicle
- What are the length and overhang specifications for towing a trailer?
- Safe towing requires reasonable expectations about your vehicle!!
- Can my insurer cancel my policy?
Tags: Car Insurance Advice, storage, tow truck, towing
This is a very unfortunate situation which occurs on a regular basis throughout South Africa. What is more worrying, is that the Ombudsman in fact supported the Insurer. I am sure that had this case been taken to court, the chances that the client would have won the case, would be good.
If an insurer insists that a vehicle be taken from your home where it was safe, then they should fit the bill, irrespective of whether the premium did not go through or not. Although the responsibility also rests with the consumer to ensure that premiums are up to date, the insurer should also, before authorising, ensure the premium is paid. There are unfortunately some small insurers, who will do there utmost best to give you “service”, but when it comes to a claim, they then do their utmost best to find ways to repudiate the claim. ( Probably the case in this scenario ).
When in doubt, do NOT allow your vehicle to be towed. ALWAYS contact your insurer PERSONALLY from your OWN phone, and take the name of the person and the number you contacted, as well as date and time. Majority of call centers today can trace back your call from the telephone number you dialled from and can listen to the recording. This protects them as well as you.
Should your vehicle be at your home, INSIST that the assesor comes to your home. If they refuse and insist that your vehicle goes to a MBR ( motor body repairer ), let them fax, e-mail or sms you confirmation. Once the tow operator arrives, ensure that the instruction is in accordance with the Insurer, NOT PANEL BEATER, and ensure that the tow operator writes on the document, and this must appear on all the duplicates too, that towing costs are not for your account, but for the insurer as per insurer instruction.
Failure to them assisting you correctly in this fashion, UTASA ( United Towing Association of South Africa ), will gladly assist. UTASA is available for professional advice 24 hours a day.
Drive safe and keep your head high.
01.12.10 at 5:20 pm