Motor

Claim case sharing

Recovery claim against third party

Scenario:
Mr. Chan's car was damaged in a traffic accident in which a third party was held responsible for causing damage to his car. Having taken out comprehensive motor insurance with us, Mr. Chan submitted a recovery claim for the repair cost.

After that, Mr. Chan wanted to claim back the following losses arising out of the accident:

  1. Deduction for depreciation 
  2. One month's rental fee payable to the landlord of the carpark that Mr. Chan has rented for daily parking of his car, as a rental agreement for 12 months had been entered into between Mr. Chan and the landlord 

As the third party was totally liable for the damage to Mr. Chan's car, basically we were not liable for the claim. But as we always aim to provide meticulous services to our customers, when Mr. Chan submitted a claim for the above items to us, we nonetheless helped him to file the claim to the third party.

However, the third party rejected the claim.

Question:
Why couldn't Mr. Chan get these claims paid?

Answer:
The reason for Mr. Chan not getting the claim for deduction for depreciation paid was because it was a matter of usage consumed by the car owner, therefore the depreciation should be borne by the car owner, i.e. Mr. Chan.

Regarding the rejection of the claim of one month's carpark rental fee, as it was a fixed cost item, the said cost would have been incurred regardless of whether the car that was damaged was parked in the rented carpark or not. Therefore, the third party was not liable for such cost.

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