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Case Review: Insurance
Summary of some of the decisions made by the Mediators on some of the complaints received by FMB.
This summary is for information only and should not be used for other purpose.
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FMB/GI 0077 - Accidental Collision/Reasonable Steps to Safeguard Vehicle from Damage
The driver of the insured vehicle, a prime mover with a trailer attached to it, had detached the trailer to facilitate an unloading exercise. He parked the prime mover a short distance away. He was in the process of reattaching the trailer to the prime mover when the trailer suddenly began sliding forward and forced the prime mover down the slope before plunging into a drain. The prime mover sustained damages as a result of the accident. The insurers declined the claim for indemnity on the ground that the nature of the accident does not fall within the ambit of policy since the damages were not caused by accidental collision or overturning.
The insured vehicle moved forward due to the slopping condition of the ground and plunged into a drain causing impact damage to the vehicle. Thus clearly there was an accidental collision and in the circumstances the cause of damage to the insured vehicle falls under section A of the policy (accidental collision).
The insurers subsequently contended that the claim was not payable on the ground of "the insured driver's negligence for failing to safeguard the vehicle from damage", apparently based on the recommendation of the adjuster which was appointed to investigate into the circumstances of the accident on 16.3.2005, i.e after the insurers had issued the letter of repudiation on 16.1.2005.
The adjuster reported that the slope has a gradient of approximately 1:10 which is considered to be moderately steep and on which a heavy vehicle can be safely parked. The spot where the driver parked the trailer was the usual place for trailers delivering consignment to be parked. The adjusters had not doubted that the driver had fully engaged the handbrakes.
Based on the report, the Mediator found there was no basis to support the adjuster's finding that the driver had failed to take all reasonable steps to safeguard the insured vehicle from damage. Accordingly the Mediator held the insurers liable to indemnify the insured for the damages to the insured vehicle.
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