Cedric Stephens, Contributor

Question: A young woman reversed her vehicle into the right side of my car which was stationary. The front and rear doors were damaged. I reported the accident to the police and my brokers. The cost of repairs amounted to $90,481, and my insurers paid $60,481.

My broker said that I should recover the excess and loss of use from the insurers of the other vehicle. Six months later, I have received nothing. My premium doubled after the accident.

At the time, my broker informed me that my no-claim discount would be reinstated after the third party's insurers settled my claim; the increased premium would be refunded. Why do I have to wait so long? Will my no-claim discount be reinstated?

- mcadam_79@yahoo.com.

Answer: A reader of my last column pointedly asked if I was "afraid to say that the tax offices have corrupt people working there?"

My response was that it would be wrong, in the absence of evidence, to blame persons working there for uninsured vehicles on our roads.

Car owners, in my opinion, are the main cause of that problem.

The non-recovery of your expenses may have more to do with the owner/driver and less with the insurer.

It is probably linked to the 'Anancyism' and/or corruption that are so much a part of this society.

Did the third party report the accident to her insurers? Some people who cause accidents do not always report them to their insurers. The owners (or drivers) simply 'forget' them. This usually happens when their vehicles suffer minor damage.

Others intentionally decide not to tell. They save money this way. If the insurers pay no money, they reason, their premiums will not increase. That this is wrong is beside the point. If the victims end up footing the bills for the accidents well, better them than me!

Ask your broker to contact the third party's insurer. Find out: (a) if the accident was reported, and (b) if so, whether the company plans to settle your claim.

An insurance contract is a promise. In the case of a motor policy, whether that promise is honoured depends on many factors.

One is the driver's age. Another is that person's driving experience and accident history.

Was the insurer aware of those details - the age, experience and accident history? Was the vehicle being driven at the time of the accident in the way that the insured said that it would be when the insurance was bought?

In order to save money

People tell lies about these things in order to save money. As Becki Patterson said in a recent article - headlined: 'The link between risk and insurance premiums' - the devil is in the detail.

Any one of these five factors - the list is not exhaustive - can make the other driver's insurer break the pledge to pay.

Insurers of persons with 'faulty' memories or those who do not report accidents cannot legally refuse to pay the victims of road accidents. That is because of a change to The Motor Vehicles Insurance (Third-Party Risks) Act.

Section 8 of the act says: "Any condition in a policy - providing that no liability shall arise - or that any liability so arising shall cease, in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy - shall be of no effect."

A motor policy imposes a duty on the insured to "give notice in writing - immediately upon the occurrence of any accident".

Another part says: "The due observance and fulfilment of the terms of this policy in so far as they relate to anything to be done or complied with by the insured - shall be conditions precedent to any liability of the company to make any payment."

Insurers could, in the past, avoid liability where the insured failed to report an accident. If the report was not submitted in writing imme-diately they could also refuse to pay. Since 1989, however, insurers have to settle the third party's claim. This is whether or not the insured has filed a report about the accident.

Since your insurers paid for the repairs to your vehicle and the accident was reported to the police, it should be easy to prove to the young lady's insurers that the accident took place - assuming, of course, that she was insured at the time of the accident and was not suffering from amnesia.

Finally, ask your broker to play a more active role. This could help recover the estimated $75,000 in losses you have incurred.

Cedric E. Stephens provides independent information and advice about risk and insurance. For free information or counsel, email Mr. Stephens at aegis@cwjamaica.com.