Q: I have a 2001 model Toyota Cressida. This vehicle was insured through our accounts department as the premium was cheaper. I had an accident at a junction. We were held 50% liable, fined and told that we had gone through a red light. The police told us to repair our own vehicles and that no one should recover any damages from the other party. When I approached my insurance company they said that damages caused by going through a traffic light are not covered. A: The documents which you have provided clearly state that any loss or damage caused by going through traffic lights is excluded from the policy. The basic intention of this is that no one should violate the basic safety requirement of the traffic rules and the legal system. This is the condition that at least eight to 10 insurers incorporate in their policies. Some insurers put this condition on a case by case basis, while others do not apply this condition for losses, as they consider the claim on a case by case basis based on their main exclusions and the intention of the insured. Based on the explicit exclusion, you have no other option but to bear the loss yourselves. However, you should impress upon your accounts department to make sure that at the renewal this condition is removed from the policy or you may buy a policy from any other insurer who is not applying this explicit condition. Q: I was working for a different sponsor as my original sponsor did not have a job for me. Recently I was injured in a vehicle accident and both sponsors refused to pay for my medical expenses. Neither of them have included me in their medical insurance policies. Whom should I pursue my claim with? A: Basically it is violation of local regulations if you are under one sponsor and working for another unless there is an explicit agreement. However, if you have a valid contract with your new sponsor, you should pursue your claim with him as you were no longer working for your old sponsor. The new sponsor should at least request his insurer to cover you under their policy based on the contract you have signed, or at least he should shoulder the cost of your current treatment. – Shujaath Ahmed Khan, an MBA, General Manager, Creative Associates is also a consultant and an expert in Insurance, Investments and Real Estate. He can be contacted at [email protected], website-www.creativeassociates.blogspot.com. __
