Question: Six months ago, I had a car accident, and the police report stated that the fault was on the part of the other party. The insurance company covered the repairs. Subsequently, my car was involved in another accident, and the police report said I was the cause of the accident.
The insurance company is refusing to pay compensation, saying I was responsible for the damages and it was the second accident in the same year. Is this legally permitted? What are my rights?
Answer: You can file a case against the insurance company to pay the compensation and the value of the car because the insurance company doesn’t have the right to refrain from paying you on the pretexts mentioned.
According to Chapter 2 of the Unified Motor Vehicle Insurance Policy Against Loss and Damage, the company is required to 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, if loss or damage arises from an accidental run-over, collision, turnover, or incident, or as a result of an unexpected mechanical breakdown or as a result of wear and tear of parts by use.
Upon the occurrence of an accident, the company shall pay the amount of loss or damage in cash to the insured if this is agreed on with the insured.
If the insured motor vehicle is lost, proves to be irreparable, or costs of repair exceed 50 per cent of the motor vehicle value before the accident, the insured value of the motor vehicle agreed upon between the insurer and the insured on signing of the insurance policy will be the basis of calculation of the compensation of loss and damage insured.
This will be after deduction of the depreciation percentage of 20 per cent from the insured value, and taking into account the fraction of insurance period (i.e., the proportion of the period from the commencement date of the insurance period to the date of the accident to the total insurance period.)
