Car Accident - Insurance claim with uninsured vehicle

04:51 am 25.01.2019
Car / Motorcycle
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04:51 am 25.01.2019

Hello, I just involve in car accident, my car has been hit by other car which he is totally his fault (verify by police). And the problem, his car are not cover by insurance (expired) and according to traffic i need to claim my own insurance. My question can i can legal action to this guy as i will lose my ncb if i claim my own insurance also other damage such i need to rental a car. Thanks

Answers:
IBanding Services
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4.9

Petaling Jaya, Selangor

12:51 pm 25.01.2019

Hi,

here are the options I see from my perspective. 

Option A) Claim against your own insurance

You claim against your own insurance company and lose NCD. 

Advantage: 

  • Car gets fixed quickly
  • You do not need to pay anything

Disadvantage: 

  • You will pay higher insurance the coming years, because you lose your NCD

 

You might get lucky that an insurance company will sue the other party on your behalf, because they want to recover the lost money from the other party. This is called "subrogation" in insurance terms. The insurance company has the right to sue the other party on behalf of you and gets pays if successful. Here your insurance agent might be able to help you get that with your insurance company. 

 

Option B) Sue for damages

You sue the other party for damages. This means you sue to get back the repair cost. You cannot sue for loss of NCD, because if the other party pays for the repair you will not lose your NCD.

Advantages:

  • you do not lose your NCD

Disadvantages: 

  • you will need to pay for your own repair upfront
  • there is no guarantee that the court will award you the full amount of your repair
  • there is no guarantee that the other party has the money to pay you
  • taking into account solicitor fee it is very likely that you will get less
  • it will take months until you get paid

 

Option C) Negotiate

Depending on how much your insurance and lost NCD is, you could just negotiate with the other party to pay you the lost NCD for one year, instead of going to court. This way you get something and the other party does not need to worry about the lawsuit. It can be a win-win. 

We wish you good luck in this unfortunate event. Please share with us what you decide. 

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