eCompareMo Answers James Deakin’s Vehicle Insurance Claims Problems4 min read
Has your car ever been a victim of a “hit and run” by another motorist? We talked to Deakin about this situation—and what you can do about it.
Owning a car for all the right reasons is all well and good, but that doesn’t change the fact that a vehicle is also a liability. This is why Compulsory Third-Party Liability Insurance (CTPL) is mandatory.
Every vehicle owner needs to show that they have CTPL when they register their vehicle at the Land Transportation Office (LTO) registration. To increase your protection, you can then get another vehicle insurance coverage that could take care of all other necessities a CTPL cannot provide.
However, even with a comprehensive vehicle insurance policy, it can still be a hassle to file claims in case of an accident especially with third-party claims. A third-party claim is the process of filing with the insurance company of the person who caused the vehicle accident. There are often instances when the third-party refuses to pay a part or for all of the damage caused.
This was the discussion covered by James Deakin’s #AskJames on YouTube and answered by eCompareMo’s very own Head of Banking and Insurance Operations, Beth Oba.
How long will settlements take?
According to Beth, these are the usual timeframes for insurance claims:
- 7 days for claims worth P300,000 and below
- 14 days for claims worth P300,000 to P500,000
Overall, it should take no more than 30 days from claims filing to releasing of check. If it takes longer than the said period, the insurance company is doing a poor job and you can report them to the Insurance Commission.
Other delays in the claim process include the scope of repairs that need to be done such as having high-end car replacements that need to be shipped from abroad. However, upon filing if the documents were completely submitted, there should be no reason for the delay of claims processing.
As part of our commitment to the hassle-free experience, eCompareMo set up its Car Insurance Concierge service. This serves as a one-stop customer care platform where our clients can get daily updates on claim status, allowing the customer to get a clear picture of a certain turnaround time for their requests.
What happens when the third-party responsible for the accident does not shoulder the expenses?
James Deakin’s raised this issue as one of the common questions he has gotten from his YouTube channel.
First, the insured should file a police report along with the third-party who caused the accident. The following conditions should be stipulated under the police report: Indicate that the third party is at fault, and that they agreed that they are liable to cover for the cost of the repair.
If the third party doesn’t have insurance, then they need to pay out of their pocket. The timeframe will depend on how long the insured has been trying to reach out to the third party. In those cases, the insured can file for a civil criminal claim against the third party, as he does not want to cooperate and will not file a claim within his own insurance company.
However, if the insured decides to claim using his own insurance, he can file for a claim under Own Damage. Upon getting the notification, the insurance provider will send an adjuster to investigate and validate that the insured did receive any form of settlement from the third party.
Once this is established, then the insured needs to sign a quitclaim form. It’s a consent form where the insured agrees that he is transferring the right to the third party to the insurance company which will recover the cost of repairs on his behalf.
That’s when the insurance company can release the letter of authority for repair. Once the repair is done, the legal team of the insurance company will have to send a demand letter to the third party, stating the full amount that they have to pay.
Usually, the first letter will be sent after the repair is done. The insured will then have to wait for 30 days and send the second demand. The timeframe is 60 days where the insurance company will try to recover from the third party. After 60 days of non-compliance, the insured can file a civil or legal case depending on the severity of the damage.
What if the third-party won’t cooperate?
According to the street lawyer Atty. DJ Jimenez, if the third-party is still not willing to cooperate, the insured can file with a police report and photos.
If the insured doesn’t have the police report and they only have the photos and documents, there’s no other recourse but to go to the prosecutor’s office and file a case of reckless imprudence resulting to damage to property.
For warrant of arrest, the prosecutor must first determine a probable cause that the person charged is probably guilty and that there was a crime committed. Then that’s the time they have to go to the court and file a criminal information. However, both parties can still have a settlement during this time.
You can watch the entire video below:
Regardless who’s at fault, one thing’s for sure: you’re better off with a car insurance protecting you and your car all the time. While you can’t control inconveniences such as fender benders or rear-end collisions, you can control your level of preparedness by getting car insurance.