Help with insurance

jase
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Joined: Thu Dec 01, 2011 7:17 am

Help with insurance

Postby jase » Thu Dec 01, 2011 7:50 am

Good morning,

Just would like some advice with the following situation:

My sister was driving in a back street approaching a small intersection with a give way sign.

She slows down and comes to a stop, as she does that a vehicle travelling through the intersection perpendicular to her direction brakes hard and slides through the intersection passing her car and then mounting the gutter on the other side of the road.

She stops to check that the driver is ok, he checks his vehicle and then leaves the area. Nothing was said and no details were exchanged.

He works for a company I use to work for and my sister works in a cafe around the corner, they don't know each other but he knows where she works.

Later that morning he comes into the cafe and hands her a invoice for two tires replaced and a wheel alignment. She calls me at this point and hands the phone over to him. We know each other. He said to me that my sister forced him to hit the gutter by not stopping at the give way sign. My sister ensures me that she stopped because she had seen his car but did not cross the give way line.

He said to me that he was going to Kia that afternoon to get two rims replaced and will be back for the invoice. I said to him that even if it was her fault the rims would cost more than the excess. He demanded my sister give him her details but she refueses and suggest to him to go to the police because she wasn't in the wrong.

She gets a call later in the day from a police officer and he request for her driver's license over the phone. She informs him that she will go in person into the police station and hand it in there if they require it. On arriving at the police station they have no record of anyone reporting that accident and they said they would not do anything because the two parties did not come into contact and there were no witnesses so therefore it'd be a civil matter.

A few days later she receives a call from AAMI and the operator basically tells her she was in the fault, and then followed by a letter for a claim. She refuesed to pay the claim and sends a letter stating she abided with all road safety rules and regulation and will not be responsibile for the expense as it was not her fault.

They only have her home address and only her first and last name. I believe the driver of the other vehicle and obtained my old address from my employment with the company and sent it to AAMI.

Any suggestions from here would be greatly apperciated in relations to her rights and where she would stand if AAMI rejects her statement.

Thank you

Jason

oscar
Posts: 706
Joined: Thu Nov 10, 2011 7:00 am

Re: Help with insurance

Postby oscar » Thu Dec 01, 2011 8:49 am

is she prepared to stand up in court and give her version of events?

the worst that AAMI can do is claim against her and if she refuses to pay, it will go to court and then they can decide - who knows what they will decide....

does she have insurance?

jase
Posts: 3
Joined: Thu Dec 01, 2011 7:17 am

Re: Help with insurance

Postby jase » Thu Dec 01, 2011 9:28 am

Yeah she is also insured with AAMI.

I'm guessing her excess is higher than the other driver as she is under 25.

If it goes to court she will stand because she is said she never crossed the line. I guess it will be difficult to prove.

She took some photos of the intersection but because it was a few days later the tire marks were not visible. She described the other driver skidded for over 10 meters. I have no idea how to calculate the stopping distance to obtain the speed, but it is a 50km area.

oscar
Posts: 706
Joined: Thu Nov 10, 2011 7:00 am

Re: Help with insurance

Postby oscar » Thu Dec 01, 2011 10:03 am

all AAMI are trying to do is make someone apart from them pay for some of the damage

do what you are doing, keep denying any wrong doing, keep everything in writing - refuse to discuss anything on phone with anyone

AAMI are literally the worst of the worst when it comes to claims

she should keep doing what she's doing - don't get overly stressed

jase
Posts: 3
Joined: Thu Dec 01, 2011 7:17 am

Re: Help with insurance

Postby jase » Thu Dec 01, 2011 10:21 am

Really apperciate the help Oscar.

At this stage she's sent her statement so we'll just wait and see which direction AAMI decides to go.

oscar
Posts: 706
Joined: Thu Nov 10, 2011 7:00 am

Re: Help with insurance

Postby oscar » Thu Dec 01, 2011 10:27 am

simple maths....

2 x rims and tyres = maybe $800

her excess maybe $500

her annual premium maybe $600

even if AAMI are successful and get her to make a claim and she pays her excess of $500, assuming she then moves her insurance to another company, AAMI will be worse off after only one year....don't propose that to AAMI, just something to keep in your back pocket

Hardy
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Re: Help with insurance

Postby Hardy » Thu Dec 01, 2011 10:10 pm

Insurance companies have themselves to blame for this type of bullshit.
They encourage their customers to do their best to blame someone else by offering to charge no excess if the accident is someone else's fault.
So now everyone tries to make up a story that someone else is to blame for their own stupidity, just to try to save a few hundred dollars. Meanwhile, it costs AAMI more than a few hundred dollars trying to sort out the lies, or taking people to court to see if a magistrate can sort it out.

The best thing to do is absolutely nothing at all. Do not communicate. Wait for the complaint. In the unlikely event that it arrives, then spend some time dealing with it by filing a defence etc. if you did not exchange names and addresses, what evidence do they have of who droe the vehicle that is allegedly at fault?

pcarr
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Re: Help with insurance

Postby pcarr » Thu Feb 02, 2012 9:45 pm

Hello all.

I am a general insurance broker with almost 10 years experience, including working at one of the main insurers in their motor vehicle claims unit.

Interesting one - most motor vehicle policies actually exclude damage to tyres when caused in isolation - they only cover the resultant damage. Specifically, AAMI's policy wording states "We will not pay for damage to your tyres caused by application of brakes or by road cuts, punctures or bursting", so I would be interested to also read the broader accident description proferred by the third party as I would suggest that prima facie it may have been incorrectly reported to AAMI.

Hardy
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Re: Help with insurance

Postby Hardy » Fri Feb 03, 2012 6:46 am

If AAMI has agreed to indemnify their insured for two tyres, then are AAMI within their rights to try to recover that loss from the party they believe is at fault even if they could have rejected the claim? Or are you saying that AAMI's right to recover its loss rests entirely on the existence of an enforceable right of subrogation under the contract?

pcarr
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Re: Help with insurance

Postby pcarr » Fri Feb 03, 2012 6:58 am

If I was representing the individual being pursued by AAMI, I would contest that as the exclusion effectively means that there's no claim to be made with AAMI, then there is also no right to subrogation under the policy.

This is of course also providing that there's no other damage. I must also say that I agree with one of the earlier posts - AAMI are a nightmare to deal with.

Hardy
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Re: Help with insurance

Postby Hardy » Fri Feb 03, 2012 7:05 am

When you get sued by a plaintiff, there is no opportunity for the defendant to challenge the power of the insurer to subrogate. The insurer is never a party to the proceeding. The insurance policy is never the subject of the claim or an issue in the case. So even if the defendant can prove there was no contract of insurance - big deal??!! He still has to defend the proceedings commenced by the plaintiff.


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