No pay-out if you hide info
MAKE sure you disclose all accidents and claims to your insurance company to avoid disappointments.
Insurance companies share information so you cannot afford not to disclose previous accidents or claims.
Unfortunately, Trudy Shungube did not know this and Budget insurance repudiated her claim last month because she did not disclose that she once hit a dog while driving her former husband's car.
"I did not know he had claimed. It was his car and his insurance. No one told me that I should reveal even minor scratches or accidents while driving someone else's car," Shungube said.
Martin Janse Van Rensburg, Budget Insurance Brokers spokesperson, said Shungube did not tell them that she had an accident before taking a policy with Budget.
"When the policy was taken out, we asked various underwriting questions to determine the client's risk profile, which played a role in her premium. As with any comprehensive vehicle insurance policy, a driver's insurance history will form a substantial part in determining the premium that a client will pay," Van Rensburg said.
He said they asked Shungube specific questions about her insurance as well as her claims history. These included any insurer as well as any claims submitted by her former husband.
He said they prompted her to declare any accidents that she did not claim for, but she told them there were none.
"When processing the claim, we noticed that her former husband had claimed for a vehicle accident during January 2008. Although he submitted the claim, Shungube was driving at the time of the accident," he said.
Van Rensburg said if she had declared the accident, Budget would have allocated a higher premium.
"The fact that Shungube did not declare the accident caused the insurer to suffer a premium prejudice of 16 percent per month. As the prejudice suffered was substantial, the claim was rejected," Van Rensburg said.
- About disclosing sobriety at the time of an accident, Helen Szemerei, chief executive of IntegriSure, said the current case in the Western Cape High Court over the reliability of the Dräger Breathalyser Test has highlighted the importance of having a reliable and effective way to check if a motorist has been drinking.
But motorists should not view this case as a way of avoiding a penalty because insurers employ various measures to tackle the issue of drunk driving, Szemerei said.
She said the insurance industry does recognise the results of Breathalyser tests, but says more evidence is often required to repudiate a claim.
She said if a Breathalyser test shows that a motorist has exceeded the legal alcohol limit, the police should request a blood test as soon as possible.
"If this result is also positive, then this will often be conclusive for a claim to be repudiated," Szemerei said.
She said some insurance underwriters only require the results of a test to reach a decision regarding the repudiation of a claim.
"Even if a blood test is not taken, a written statement from a traffic officer at the scene indicating that the driver appeared intoxicated is also acceptable for some insurer's to reject a claim," she said.
She said some companies have become very strict regarding drunk driving and have sourced CCTV footage of a claimant in a restaurant or bar before an accident to ascertain if they have drunk more than they admitted.
"Having a claim repudiated as a result of drinking and driving is likely to impact significantly on one's ability to get insurance," she said.
Never lie to the insurer
No pay-out if you hide info
MAKE sure you disclose all accidents and claims to your insurance company to avoid disappointments.
Insurance companies share information so you cannot afford not to disclose previous accidents or claims.
Unfortunately, Trudy Shungube did not know this and Budget insurance repudiated her claim last month because she did not disclose that she once hit a dog while driving her former husband's car.
"I did not know he had claimed. It was his car and his insurance. No one told me that I should reveal even minor scratches or accidents while driving someone else's car," Shungube said.
Martin Janse Van Rensburg, Budget Insurance Brokers spokesperson, said Shungube did not tell them that she had an accident before taking a policy with Budget.
"When the policy was taken out, we asked various underwriting questions to determine the client's risk profile, which played a role in her premium. As with any comprehensive vehicle insurance policy, a driver's insurance history will form a substantial part in determining the premium that a client will pay," Van Rensburg said.
He said they asked Shungube specific questions about her insurance as well as her claims history. These included any insurer as well as any claims submitted by her former husband.
He said they prompted her to declare any accidents that she did not claim for, but she told them there were none.
"When processing the claim, we noticed that her former husband had claimed for a vehicle accident during January 2008. Although he submitted the claim, Shungube was driving at the time of the accident," he said.
Van Rensburg said if she had declared the accident, Budget would have allocated a higher premium.
"The fact that Shungube did not declare the accident caused the insurer to suffer a premium prejudice of 16 percent per month. As the prejudice suffered was substantial, the claim was rejected," Van Rensburg said.
But motorists should not view this case as a way of avoiding a penalty because insurers employ various measures to tackle the issue of drunk driving, Szemerei said.
She said the insurance industry does recognise the results of Breathalyser tests, but says more evidence is often required to repudiate a claim.
She said if a Breathalyser test shows that a motorist has exceeded the legal alcohol limit, the police should request a blood test as soon as possible.
"If this result is also positive, then this will often be conclusive for a claim to be repudiated," Szemerei said.
She said some insurance underwriters only require the results of a test to reach a decision regarding the repudiation of a claim.
"Even if a blood test is not taken, a written statement from a traffic officer at the scene indicating that the driver appeared intoxicated is also acceptable for some insurer's to reject a claim," she said.
She said some companies have become very strict regarding drunk driving and have sourced CCTV footage of a claimant in a restaurant or bar before an accident to ascertain if they have drunk more than they admitted.
"Having a claim repudiated as a result of drinking and driving is likely to impact significantly on one's ability to get insurance," she said.
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