On Thursday evening I had an interesting request for advice from a friend. One of his workers damaged his vehicle in a car accident. The vehicle is insured in the name of the dad but the son was driving the vehicle. The insurance company now refuses to make payment on this claim as the driver was not the insured party. I was asked how to respond to this scenario.
My comments might however not be what they were hoping for. This very same scenario was the considered by the Ombudsman for Short Term Insurance and I referred to this on the Car Insurance Blog in a post titled “The truth, whole truth and nothing but the truth with car insurance!”
In this actual scenario the insurer investigated the matter and discovered that the Insured’s son had been the regular driver of the vehicle for some time. Had the Insurer been informed of the change in the risk profile, the premium would have increased from R126.16 to R207.14 per month. The Insurer accordingly received only 60% of the correct premium.
The Ombudsman agreed with the Insurer that it was entitled to maintain its rejection of the claim.
Friends often try to be clever and advise that the insurer should allege that the driver did drive with consent on that occasion and that he is not the regular driver. The insurance companies should however not be underestimated – they do their homework and will ask colleagues at work and friends about the driver and the vehicle that he normally drives.
By lying and making a false statement you could however be charged with fraud if it appears that you have made false statements. There is however an even more important question you might need to ask yourself – what value would you place on your integrity? Is there any monetary amount that would justify in your mind the telling of a lie?
We would advise all parents to check their insurance. If your child is going to drive a specific vehicle – tell your insurer that the child is the regular driver and rather pay a more expensive premium. This would remove the threat of facing a moral dilemma later!!
View the Car Insurance Blog for more info about car insurance claims and responses from the Ombudsman.