QUESTION:
MY car collided with a minibus over seven months ago. The third party did not tell his insurers about the accident. They asked me to get a police report. It said the other driver was at fault. The insurers (United General, who also cover my car) wrote to the third party. They sent him a copy of the report and said that they would have to wait for his reply in order to settle my claim. I have made several calls to the company since that time. On each occasion they said that the third party has not replied. A few days ago they told me by letter that my claim would not be settled. "The third party's policy has been breached as the driver did not meet the necessary requirements as stipulated by his policy." This decision was based on information from the Inland Revenue Department. The third party has still not replied to their letter. Can you please advise me what to do?
- sinco2_2000@yahoo.com
Answer:
United General's marketing manager, Ruth Cummings says the article I wrote under the headline "A comedy of errors?" (published on August 10) was "inaccurate, biased and damaging." She also said that if I had the benefit of all the facts the "article would have been more balanced." These are serious charges. Given the need for fairness and UGI's clout in the market place (in that order) I have returned to your question.
SUMMARY OF MY REPLY TO THE QUESTION
I disagreed with UGI's decision not to pay your claim. That conclusion was founded on four pillars. 1) The actions of the company's employees suggested it was more interested in avoiding payment than solving your problem. 2) Employees incorrectly stated that the company had no authority to settle without the intervention of the third party. 3) The claims official was unaware of section (8) - 1 of the Motor Vehicles Insurance (Third Party Risks) Act which was effected 16 years ago. Insurers cannot avoid paying claims simply because an accident was not reported. 4) The customer should not have had to wait seven months to hear that the claim would not be settled. I also said that the claim should be reviewed because of those "errors."
SUMMARY OF MS CUMMINGS' RESPONSE TO THE ARTICLE
Ms. Cummings recited three facts in response to the "inaccuracies" in the article. They are:
1. The minibus was insured under a "Public Passenger Vehicle contract." Under the terms of that policy drivers "...must not be less than 25 years of age and must hold the appropriate driver's permit for not less than three years."
2. The insurance policy was breached on two occasions. (a) The owner and/or driver failed to report the accident and (b) at the time of the accident, the driver "did not have the appropriate driver's licence for the required time."
3. The seven-month delay was largely outside the control of UGI. The company depends on agencies of Government (the police and collectorate of taxes) for information to settle claims. The police report took three months while information about the driver's licence was obtained during May.
Ms. Cummings described the article as "inaccurate, biased and damaging." She also opined that if I had the benefit of all the facts it "would have been more balanced."
MY REACTION TO MS CUMMINGS' LETTER
Ms. Cummings continues to impress me by her energy and commitment. She gave plausible reasons for the seven-month delay. Also, she agreed that an insurer cannot avoid a claim because of the failure of its customer to report an accident. She provided no evidence to show why the article was "inaccurate, biased and (therefore) damaging."
Should I revise my opinion that her company needs to improve its claims operations? It would have been a horse of an entirely different colour if she admitted that the company had "screwed up." Or, if she offered to settle the claim - ex gratia - based on her recognition of your "frustration" and the aim of section (8) - 1 of the Motor Vehicles Insurance (Third Party Risks) Act. Market leadership in my books imposes, among other things, a duty to find solutions to everyday problems - not hiding behind old excuses or using a strategy that is more associated with politics than with consumer centric businesses!
Cedric 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.
