DO passengers have any insurance protection when they use public transportation?
My daughter was seriously injured while travelling in a minibus between Kingston and Bog Walk last year. What should I do to make a claim?
- F.K., Bog Walk P.O.
St. Catherine.
Answer: All public passenger vehicles (PPVs) are not created equal.
Some play by the rules. They are regulated by the Transport Authority (TA).
Others operate in the grey economy. They 'do a t'ing', using their rules, not those of the Government.
Chances are if your daughter was using a minibus which had official permission to ply its trade, it is likely that insurance protection was in place.
On the other hand, if she used a vehicle from the other sector, the outcome would be iffier.
PPVs that carry the TA's stamp of approval usually get proper insurance. This means, among other things, that they have complied with all of the rules before buying coverage.
It also assumes that they bought insurance to protect passengers.
Members of the other group 'self-insure' in a way that the law does not recognise. Many buy insurance but conceal important information from their insurers.
Nothing is said about the carrying of fare-paying passengers, that they flout the TA's rules or that their sole aim is to get from point A to point B in the shortest possible time.
When an accident occurs, then 'story come to bump', and insurers often refuse to pay.
In short, not all PPV passengers have access to insurance with real 'backative'.
COURTHOUSE COULD MEAN A LONG WAIT
An insurer's refusal to pay an injured passenger may leave the owner/driver personally liable.
This means, in one word, courthouse. The injured person will have to retain the services of an attorney to get compensation.
The lawyer will prepare the case. When the matter goes to trial years later, the court may make an award in favour of the injured person.
The final step in this long-drawn-out process is to collect the money. At the end of the day, the owner/driver may have no money to pay the award.
It is important for the attorney to find out very early in the game if it makes sense to go to trial.
MAKING A CLAIM WHERE THE PPV CARRIES INSURANCE
Where the PPV owner or operator plays by the rules, it is fairly simple to make a claim for property damage, or in your daughter's case, personal injury.
Insurers will say that in spite of all the criticisms, they settle claims more quickly than the court system - provided there is no dispute about coverage.
Motor policies that cover legal liability to passengers provide limited protection.
In 1997, for example, a local court awarded $34.5 million to an injured passenger. Policy limits apply per person and for each event.
A typical set of limits would be $1.5 million any one person and $4 million any one accident.
In your daughter's case, I recommend that you obtain the services of a lawyer. He or she would prepare the claim and negotiate with the insurer.
Make sure to agree that the attorney's fee forms part of the claim. Even if you had to find money to pay the fee up front, this course of action is certain to prove more beneficial than if you were to try to deal with the matter on your own.
Cedric E. Stephens provides independent information and advice about the management of risks and insurance. If you need free information or counsel to help you solve a problem write to The Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com
