Motor

Claim case sharing

Minor collision

Mr. Cheng was driving along Clear Water Bay Road and accidentally crashed into the side mirror of Mr. Wong’s car. As the collision only caused minor damage, they both agreed not to report it to the police and decided on private settlement. Mr. Wong estimated the damage and requested HK$1,000 as compensation. Thinking that his motor insurance policy had a HK$1,500 excess, and as he wanted to keep his No Claims Bonus (NCB), Mr. Cheng agreed and settled immediately.
 
Three months later, Mr. Cheng received a claim from Mr. Wong’s motor insurance company. It stated that Mr. Wong’s back was hurt in the previous motor collision with Mr. Cheng’s car. Mr. Wong had spent HK$20,000 on his medical treatment and wanted to claim from Mr. Cheng. Mr. Cheng then filed the claim with his motor insurance company. However, his insurance company declined his claim as the earlier motor collision had never been reported. 
 
Why did Mr. Cheng’s motor insurance company decline his claim? 
 
According to the motor insurance policy, Mr. Cheng was obliged to report every single motoring incident immediately. Late reporting to an insurance company can affect its right to collect evidence to defend its claim, and, because of this, insurance companies have the right to reject late-reported claims.

To enjoy comprehensive protection, customers should immediately report all motoring incidents to their insurance company regardless of the seriousness of the damage.

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