Answer: Your four questions are fairly easy to answer. However, like your insurers, I am very curious to learn who owns the car you were driving at the time of the accident.

Joint ownership of a vehicle - for example by husband and wife in a legal or common-law union, parent/child, brother/sister or in a business partnership - is not uncommon. There are usually simple reasons for these types of arrangements. Insurance problems seldom arise from them. Your insurer's actions suggest something out of the norm. You have not said that you are the owner and have not offered any information. Why the silence on this subject?

INSURABLE INTEREST

Insurable interest is the foundation of all insurance contracts. That interest arises when one party (an owner or lender) can show an expectation of monetary loss if property (a vehicle or a house) is damaged or destroyed. There must be such interest when the insurance begins.

It must also exist at the time of loss. An insured's insurable interest in a car ends when the vehicle is sold. If it were to be burnt after the sale, he or she would suffer no monetary loss. So, if you had no financial stake in the vehicle you were driving at the time of the accident, the insurer would not have to pay you anything - even if you had a comprehensive policy.

The six-month period for the settlement of this claim seems too long in today's high-speed world. Ask your broker to find out the reasons for the long delay. Find out about the status of the investigations and get an estimate when the company is likely to make a decision on the matter.

DUE-DILIGENCE CHECKS

Due-diligence checks are standard for the insurance business. Insurers carry out two kinds of checks. Like commercial banks, they try to avoid persons or companies who are involved in money-laundering activities. This is required by law.

The second type of check helps them to identify and avoid 'bad motor-insurance risks.' For example, they keep a list of the names of all drivers who have caused accidents. As a result, they can tell when a motorist is telling lies about his accident history. This helps them to more accurately calculate how much in premiums to charge. They also keep information on persons who cheat them.

Due-diligence checks are, however, not insurers' nuclear weapons. Buyers have a duty to tell insurers everything that is material or significant to the insurance contract. Insurers can void the contract when there is a breach of duty.

INSURERS HOLD THE BIG STICK

The parties to an insurance contract are not equals. The insurer wields the big stick. The terms of the contract are decided by them. Generally, the company can refuse to pay your claim under many circumstances. If, for example, you withheld information about the ownership of the vehicle when you bought the insurance, they can refuse to pay.

SUING NOT THE SOLUTION

The quickest solution to your problem is to resolve the issues concerning the ownership of the vehicle. What information did you give them when the vehicle was being insured? Are you the owner of the vehicle? If not, why did you insure it?

The important thing is to come clean.

Bear in mind that if you were 'trying a ting' the insurers can attempt to have you prosecuted on a fraud charge. With the backlog in the courts, the threat of a lawsuit is unlikely to frighten them. They have piles of cash and can hire the best lawyers.

Cedric E. Stephens provides free, independent information and advice about risk and insurance. Email: aegis@cwjamaica.com