Motor Insurance

Q :	A is the car owner and let his friend B to drive his car one day. B is only 24 years old and possesses half years driving experience. Unfortunately, B crashed the vehicle. How could A claim for compensation from his comprehensive motor policy?
A :	If B possesses an valid driving licence at the material time, A should be entitled to receive compensation from his insurer except that there is any special exclusion in the policy. Normal comprehensive motor policy would require the insured to bear an amount of excess if the driver involved was under 25 years old and/or less than two years driving experience at the time of accident. If B was not "named driver", a further excess as stipulated in the policy may also apply.
Q :	A client possesses a comprehensive motor policy and his car was damaged by water during a rainstorm. Should the client be compensated under the policy? If the water damage was caused by typhoon, will the claim be affected?
A :	According to the standard wording of motor policy provided by the Insurance Authority, comprehensive motor policy is an all risk policy. The insured would be compensated no matter the damage was caused by rainstorm or typhoon.
Q :	If an individual client who possess a motor policy with NCD set up a limited company and prepared to transfer the ownership of the insured vehicle to that company. Is it possible to transfer the NCD to the new company if the client is both the director and the named driver?
A :	According to the law, limited company is a "Separate legal entity" which is different from shareholder. So, strictly speaking, the NCD of the director is not transferable to his/her own limited company.
Q :	When a van driver just parked the vehicle at the roadside and opened the door, it hit a pedestrian. The pedestrian sustained visible injury on his arm and shoulder and asked for compensate from the driver. Should the driver pay immediately? Will third party motor policy cover this kind of incident?
A :	Most motor policy consist of a condition which required the insured and his driver to avoid compensate or promise any third party for compensation once an accident occurred. Otherwise the insurance company would be entitled to repudiate liability under the policy. In this case, the driver should not pay or promise to pay if he expected the insurance company to handle the claim. A motor policy covers not only the third party liability of the driver when he/she was driving but also when the vehicle was in use. Thus policy liability should be attached to the third party motor policy in this case.