QUESTION: ON December 10, 2004, while driving easterly through the intersection of Seymour and Seaview avenues, my car was hit. The other car was travelling southerly down Seaview Avenue. I had stopped at the four-way stop sign. There were no cars on either side of Seaview Avenue. While proceeding to move across, I suddenly noticed a car racing down Seaview Avenue. The driver did not attempt to stop even though I was already in the intersection. Her car struck the front left side of mine, damaging the entire front left panel, part of the bumper and a section of the left front door. My brokers, Guardian, told me that the cost of repairs ($124,000) was below my policy excess. I paid to fix my car. At the policy renewal in May my 60 per cent no claim bonus was withheld. I objected very strongly. A discount of 30 per cent was allowed. They told me that a further refund 'may' be given when the matter was settled. The third party is insured with General Accident. It has refused to accept liability for the accident. Guardian says that the matter cannot be resolved until they get a reply from GA. What can I do?
- D.W., Kingston 10.
ANSWER: General Accident has given Guardian a positive response. The broker's claims manager, Laurel Smith, has worked magic. He and his company should be applauded. He persuaded GA about the errors of their way. They now agree that the third party's driver damaged your car. As a result, GA will refund your repair costs. This agreement, which was reached in less than 24 hours after I made contact with your brokers, should also lead to the reinstatement of your no claims discount.
SOME THINGS THAT WENT WRONG WITH YOUR CLAIM:
Your claim should have been settled months ago. This is based on what I know about insurance broking and the claims settlement process. Here are a few examples of things that went wrong and right with the handling of the claim. I hope that they will be of benefit to you and other readers in dealing with claims that you may have in the future:
Guardian forgot that its mission was to act as your advocate in its dealings with General Accident.
The brokers did not properly read your statement about the collision or, having read it incorrectly, concluded that you were partly to blame.
The claims officials at Guardian and General Accident seem to have been ignorant about the Road Code and, in particular, the convention relating to four-way stop signs.
It escaped the brokers and GA that insurers have the exclusive right to negotiate and settle claims. There is no need to seek the approval of the insured driver to make decisions about liability.
Guardian was incorrect to have accepted the withdrawal of the no claims discount by your insurers, NEM, and for giving you the line about full reinstatement after the matter was settled.
THINGS THAT WENT RIGHT:
You maintained written records of the claim at all stages of the process.
Your statement of the facts leading up to the accident was very detailed and provided a complete word picture of the events which contributed to it.
You behaved in the manner of an informed consumer by challenging Guardian and NEM about the removal of the discount.
You sought a second opinion about the claim when you disagreed with the opinion of your broker.
Guardian's claims manager, although unwilling to concede his company's errors in the handling of the claim, moved quickly into a damage control mode after receiving my email.
Guardian handled this matter far more professionally than its sister company United General did on another case I wrote about a few weeks ago. No PR. No excuses, just action. They deserve applause. At the same time, however, I cannot help wondering how your claim would have developed in the absence of my intervention or, how many other claims they have in their system which could do with a review.
Please let me know if you do not receive an offer of settlement from GA in the next 10 days.
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.
