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.
FMB/GI 0400 - Whether there was Accidental Collision
The insured equipment was damaged when a boulder crashed into it. The insurers declined the claim for indemnity on the ground that the boulder crashed into a stationary equipment and such circumstances could not be construed as accidental collision. The insurers referred to a dictionary definition of collision i.e "an accident in which a vehicle that is moving crashes into something".
It is inappropriate for the insurers to decline claim merely by referring to the dictionary definition of 'collision'. There are several definitions of 'collision'. The insured, for instance, submitted a dictionary definition of collision as "an act of colliding or coming together with sudden".>/i>
In determining whether the circumstances of the accident fall within the policy coverage, the insurers should consider the purpose and intention of the policy coverage on accidental collision.
Upon being queried the insurers revised their decision and approved the claim.