Question: I lived abroad for many years. When I returned I brought my car with me. I insured it comprehensively. I have never been in an accident until earlier this year. I was driving from Montego Bay towards Duncans. A taxi overtook my car near the JPS sub-station. I saw the same vehicle later letting off passengers. It was on the left side of the road. As I approached, it suddenly reversed across the road. I took evasive action but it hit the left side of my car. My insurers paid the repair bill for $170,000 after the excess. My premium has now gone up by over 100 per cent. The insurers seem to be dragging their feet in getting back their money from the third party. Can you help me to recover from the third party?- M.R.,
Ocho Rios P.O.,
St. Ann.
Answer: You played by the rules and bought motor insurance. And guess what? You got the shaft! The rod consists of your excess, loss of use expenses, loss of 50 per cent no-claims discount, increased premiums plus the inconvenience and stress. These costs will be with you for years. Even though the third party caused the accident, he bears no burden. Unlike you, he understands 'the runnings'. The rules are there to be broken!
The outlook for recovery seems dim. You and your insurers are unlikely to get anything from the taxi man. Maybe this is why it appears that that your insurers are dragging their feet. Here are seven reasons.
The driver may have given an incorrect address.
He did not have the proper licence.
The insurance could have excluded him.
He failed to report the accident to his insurers.
The vehicle may be uninsured.
He operated the vehicle in breach of a policy condition.
He and owner may be 'persons of straw'. Like the lottery, any combination can play.
Third parties fall in two broad groups. The first consists of persons like you who obey the rules. They buy insurance and drive with care and consideration for others. The other set pay no attention to the rules of either God or man. They are rude, aggressive, untrustworthy, most often male and accident-prone. Most of them do not buy insurance. They represent anywhere between 25 to 40 per cent of the persons driving on our roads today. The third party who hit your car seems to fit this profile. If my estimates are correct, the probability of colliding with someone in the second group could be as high as one in four or one in three. This accident will end up costing you over $100,000 over the next five years. Neither the police, the courts, your insurers nor the insurance regulators can solve this problem. This is, I guess, part of the social costs that law-abiding citizens like you must bear for owning motorcars in Jamaica.
Were I in your position, I would cut my financial and emotional investment in this accident. The prospect of getting any returns seems very remote.
Finally, I must end on a positive note. The evasive action and the side impact protection feature of your car may have saved you from injury. The financial losses though heavy, are not crippling. Your motor vehicle is now back on the road and is in good condition. You now have a much better idea of 'the runnings' on our roads. This should put you in good stead in the unlikely event that you have another accident. Give thanks!
Cedric E. Stephens is a consultant with over 30 years' experience in the insurance industry. If you need free advice about risks or insurance, write to The Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com.
