A cry to the minister of justice

Cedric Stephens, Insurance Helpline Columnist

Question: I drive a 2008 Suzuki Grande Vitara. It was involved in an accident last August with a Nissan Sentra. The collision occurred on Hope Road near Andrews Memorial Hospital. The repair bill for my car is J$1.4 million. The Nissan came out of the hospital's exit gate and was heading across Hope Road into Kingsway. The driver did not pause to check if the traffic in my lane was free and went across the path of my car which was going up Hope Road towards Liguanea. I swerved to the right but was unable to avoid the collision. My insurers concluded that the Nissan driver was at fault. The investigator's report was sent to the third party's insurers. They said that they have to let their client see the report before responding. What would happen if he were to continue to maintain that he is not at fault? I have been severely inconvenienced because of the recklessness of this man. Can you help?

HelpLine: I visited the scene of the accident, courtesy of Google Earth. I used the zoom feature of Google Maps to examine the location using my computer. I saw the hospital exit as it would have appeared to the Nissan driver, and Hope Road - with two lanes going down towards Half-Way Tree and two lanes going up, in the direction of King's House.

Kingsway was clearly visible. It is almost opposite to the hospital exit and sits at a right angle to Hope Road. I know that this intersection is controlled by traffic lights but they do not apply to vehicles leaving the hospital.

During my visit, I was reminded that there is a sign that prohibits the making of right turns from Hope Road into Kingsway during certain hours. Presumably this was done to facilitate the flow of traffic travelling towards King's House.

Does the no right-turn sign apply to drivers of cars leaving the hospital who wish to enter Kingsgate? Is crossing four lanes of traffic to enter that roadway permissible given the intent of the no right-turn sign? Drivers who feel this manoeuvre is allowed need to proceed with extreme caution.

The safer and wiser option, in my opinion, would be to make a left turn on exiting the hospital premises and travel in a south-westerly direction along Hope Road and then make a right turn on to Waterloo Road. Persons who fail to do so on leaving the hospital will find it extremely difficult to escape liability in the event of a collision.

I do not understand the reason for the delay in handling your claim. The need for an investigator's report, the song and dance about who caused the accident or the need to seek the opinion of the Nissan's driver was superfluous, thanks to Google.

This is the second time in a few days that I am hearing insurers' representatives say that they have to consult their clients before making a decision about liability. There is no justification for this action. Motor policies - indeed all types of policies - give insurers the right to negotiate, offer, compromise, defend or settle claims. That role is never shared with any other party.

I understand your insurer's reluctance to leave you to drive the claim settlement process. You have third-party insurance. The funds to fix your vehicle will have to come from the Nissan driver's insurers.

When I spoke with them last Thursday, they gave up without a fight. They told me that they now realise that their guy was at fault and have therefore decided to settle your claim. What they omitted to say was far more important.

The third party bought the minimum amount of coverage that is required by law, according to your insurers. The other driver bought an Act policy. This is the cheapest form of motor insurance. As a result, the maximum amount that his insurers are liable to pay you to fix your car will be limited to J$500,000. The Nissan driver is a 'man of straw' and therefore a lawsuit to recover J$900,000 will not make any sense.

Why has it taken the third party's insurers nearly three months to make up their mind about liability and to tell you about the limitations in their customer's policy? Didn't they owe you a moral duty to disclose these facts three months ago? Why are the Financial Services Commission's claims best practices silent on issues like these?

I am very sorry that your case has turned out this way. The Government says that it is revising the Road Traffic Act. It is my hope that that plan will be accompanied by increases in the limits under the Motor Vehicle Insurance (Third Party Risks) Act to more realistic levels. Only this action can prevent a situation like this from happening again in the future.

Minister of Justice Delroy Chuck, this kind of injustice should be brought to an end.

Cedric E. Stephens provides independent information and free advice about the management of risks and insurance.aegis@cwjamaica.comSMS/text message to 812-7233.