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Had an #Accident that is not your fault? but the other party wants to settle in cash? Below is an example template that can be used as a contract to finalise the claim.

By 25th June 2024No Comments
non fault accident

The Devious Car Insurance Scam Hidden In Your Policy! And How to Deal With it

I recently did a video with Jack Pegaro at Number 27 on youtube @Number27. You can find that here https://www.youtube.com/watch?v=bX0whUltya8&t=488s

In that video I was asked on what options are available to a someone who has been subject to an incident that is not their fault. In general, 99% of people have not idea what so ever of the cost of repairing even slight damage and do not understand that even slight damage on a rear bumper for example can easily get into over a thousand pounds.

The reason for this, is that some cars have lane departure radars behind the rear bumpers, companies like Jaguar advise that you cannot apply bodyfiller in those areas, and as such even minor scuffs can require the bumper to be replaced.

However, there are times when it benefits all parties to not engage with insurers.

The Law

Insurers will advise that you ALWAYS need to make them aware of EVERY incident. This is not the case, and there is no law that says that. What the law DOES say , dates back to the 1930 and latterly 1932 Road Traffic Act when we had the implementation of compulsory third party liability insurance.

What we had then , was the legal obligation to pass your details of both yourself and your insurance to the injured party. The injured party has a “lawful” entitlement in “Tort” law, to then claim off you personally for the losses arising out of your negligence.

As you now have insurance to cover this, and you have subrogated your rights to your insurer to act on your behalf in relation to any claim being made against you. You have a CONTRACTURAL ( not legal via Statute) to mitigate losses on behalf of your insurer in the event of loss, and are required to notify them.

You have NO requirement to notify your insurer at the time of the incident when someone else is liable.

As this topic is discussing the merits of someone else’s negligence, it falls under the law of “TORT”.  As this is a “Civil wrong” it can be settled “Civilly” . Ie , between the parties involved.

There are times when this is beneficial, the cost of repair might be low, or a claim on the other parties insurance might adversely affect it to such an extent, they might not be able to gain insurance in the future.

 

When agreeing on this course of action, the agreement needs to be documents and form a lawful contract.

The contract should advise of the parties involved, their vehicle details, it should provide and explanation of the incident, and the damage caused , with images of that damage. It is also beneficial to photograph the vehicle that caused the damage, and the damage that it also has.

 

Below , I have attached an example document that can be used, with an image of a damaged vehicle , with arrows highlighting the fresh damage.

It is imperative, that any agreement arrived at is done on the basis of “FULL AND FINAL” SETTLEMENT. When this is done, as it is full and final, there is then no risk of a future claim being made, or a need for the insurance company to be notified.

Doing the above protects ALL parties involved, both the claimant and liable person.

IT IS IMPORTANT TO NOTE, THAT AT THE INCEPTION OF YOU NEXT POLICY, YOU DO NEED TO NOTIFY YOUR INSURER OF ANY INCIDENT THAT YOU “THINK” THEY MAY NEED TO BE AWARE OF, THIS FALLS UNDER THE 2012 CONSUMER DISCLOSURE AND REPRESENTATIONS ACT. ( WHETHER YOU CHOSE NOT TO, IS UP TO YOU, BUT IF NO PARTY HAS CLAIMED OR NOTIFIED THEIR INSURER, IT IS NOT DOCUMENTED ANYWHERE). 

Tpty incident contract without insurance claim  CLICK ON THIS LINK TO DOWNLOAD.

Tpty incident contract without insurance claim

 

Tim Kelly

Tim is a highly qualified Independent Engineer with over 20 years experience as an Engineering Assessor of damaged vehicles.

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