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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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/GI 0107, 0165 & 0434 - Delay in Giving Notice of Accident
The private car policy stipulates that the insurers must be notified with full details as soon as possible after an event which may become the subject of a claim under the policy.
In deciding whether the requirement that notice be given 'as soon as possible' has been satisfied, the court looks at the facts and circumstances of the individual case (Verelst's Administratrix v Motor Union Insurance Co [1925] 2KB 137; Public Insurance Co Ltd v Lee Chau [1969] 2 MLJ 10).
In the above cases referred to the Mediator notice was given to the insurers about two and a half months after the accident. It is relevant to consider whether the delay had jeopardized the insurer's investigation into the accident claim. According to the adjuster's report the damages to the insured vehicle were consistent with the circumstances of the accident as reported. There was no evidence that the damages had been aggravated. The Mediator found that the delay in notifying the insurers of the accident had not affected the interest of the insurers in any way. In this connection it is relevant to refer to the following provision in the Guidelines on Claims Settlement Practices issued by BNM:-
"An insurer should not repudiate a claim on the following grounds:-
(a) technical breaches of warranty or policy condition which are not material or unconnected to the circumstances of loss, unless it has prejudiced the interest of the insurer or has exceeded time bar"
In the circumstances the Mediator held the insurers liable to settle the insureds' claims.
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