Who drives your car affects your insurance claims…

Motor insurance policy is insurance purchased for cars, trucks, and other vehicles to provide protection against losses incurred as a result of traffic accidents, theft and against liability that could be incurred in an accident.

In taking this policy, care must be taken to understand the policy document and the clauses that are around it.

Controversy ensued recently between an insurance company and a client who took a comprehensive motor insurance cover for his brand new Toyota Corolla car.

At the time of taking the policy, the client has proudly filled the form that the car would be driven by him and his wife only, and because he so much cherished the car, he did not think that he may one day give the car to another person to drive.

In the policy document was a clause which probably could have increased the premium paid on the policy a little above what was paid, which says the car can as well be driven by any other person who is licensed to drive.

But due to his selfishness, the client ignored this clause either not wanting to pay the extra premium or because he wanted only him and his wife to cruise on the Toyota car.

Unfortunately, one night the man took ill and was unconscious that he could not drive and his wife out of fear became jittery that people around under any circumstance would not want her to drive because she was restless over the health of her husband.

The alternative was to beckon on a neighbour who could drive and has driving license to help take them to the hospital, and getting to the hospital the man was admitted and the neighbour began driving home to get some things from the house.

Along the way, an accident happened and the cherished Toyota Car was smashed by a standby trailer and there was serious damage.

The insurance company was alerted and the first question they asked was, who was driving the car at the point of the accident? And it was informed that it is the owner’s neighbour who unfortunately is not covered under the policy.

At this point, the insured is at the mercy of the insurance company because the insurer has the right to repudiate (reject) the claim because it is not covered under the contract. That was how the man lost the claim on the car after taking a comprehensive cover for it.

Like Tayo Ogumodede, general manager, Boldrisk Insurance Brokers Limited, puts it, “there is no pity in insurance business, that is why you must understand your policy document.”

Roland Awoyinfa, south-west coordinator, Goldlink Insurance plc, said that the ‘insurance’ is the contract paper and that determines the justification for claim, except on compassionate basis.

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