Ask the Law: Can I obligate insurance company to repair my car?

Question: I have a comprehensive insurance for my car that covers repairs. A month ago, my car had an accident and my 19-year old friend was driving it and he was under the influence of alcohol. Now, the insurance company refuses to pay compensation on the grounds that the driver was under the influence of alcohol and that there was no accident report from the police. My question is, what is the law’s position on the insurance company’s behaviour and what are the legal procedures that I must follow to oblige the insurance company to repair my car? Does the law require the insurance company to provide me with a car during the period of repairing my car? Please advise.

Answer: The unified motor vehicle insurance policy against loss and damage gives the company the right not to pay the compensation or to recourse to the insured in case the loss occurs while the motor vehicle is being driven under the influence of alcohol but not if there is no accident report from the police.

Chapter 4 of the mentioned policy regarding exclusions states that in case the loss or damage occurs to the motor vehicle, or any part thereof, with respect to accidents while the motor vehicle is being driven under the influence of narcotics, alcohol or drugs that undermine the driver’s ability to control the motor vehicle if this is proven to the competent authorities or confessed by the motor vehicle driver. This exclusion does not apply in case of rental vehicles.

Moreover, the company may have recourse to the insured or the motor vehicle driver or both, as the case may be, in the amount of compensation paid if it is proven that loss or damage that occurred to the motor vehicle, or any part thereof, arose from the insured or another person driving under the influence of narcotics, alcohol or drugs.

Anyway, you have the right to file a civil suit against the insurance company and the court will take the decision whether to oblige the insurance company to pay the compensation or not as per the situation and documents submitted.

Replacement car during repair

Providing you with a car during the period of repairing your car is not one of the obligations of the insurance company upon the occurrence of an accident, but the company will be obliged to do this if it was agreed on this matter in the insurance contract.

Chapter 2 regarding Obligations of the Insurance Company states that:

(1) The Company shall compensate the insured for loss or damage that occurs to the insured motor vehicle and its accessories while in the vehicle, including damaged parts and spare parts for any additional coverage to be agreed upon under this policy or special riders to it.

It also states under the same chapter that:

(2) Upon the occurrence of an accident, the company shall:

a. Repair the motor vehicle or any of its parts, accessories, or spare parts and restore the vehicle to its pre-accident condition.

b. Pay the amount of loss or damage in cash to the Insured if this is agreed on with the insured.

c. Replace the damaged motor vehicle in case of a total loss, unless the Insured requests the company to pay them the amount in cash. In this case, the company shall respond to the insured’s request.