Landmark court ruling on accident victim automatic compensation a surprise
Published on: Sunday, August 14, 2022
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Credit: freshbooks.com
The landmark ruling was delivered in a 140-page judgment that allowed appeals by eight different motorists, seven of whom were injured in crashes.
Insurance coverage and compensation is one of the topics in the Travel and Tours Enhancement Course (TTEC) module “Preparing for future shocks”, which is compulsory for travel and tour operators to attend if they intend to renew their company licence.
Industry players ought to be well-versed in motor insurance as their customers travel in tour buses, vans or cars.
Many operate their own fleet of tour vehicles, while others also offer cars for rent.
But many are clueless about vehicle insurance, particularly the terms and conditions stipulated in the policy.
I once challenged a major operator, who has been providing tour bus services for more than three decades, to name the insurance cover for passengers.
When he named legal liability to passenger (LLTP), I pointed out that this covers the driver’s liability, not the passengers.
In this case, injured passengers could only expect the insurance company to compensate for medical expenses, loss of income and other claims if the driver was found to be at fault.
Unlike personal accident insurance, which covers a specific sum for loss of life,limb, disablement and limited medical expenses caused by accidents without having to establish who was responsible, the LLTP kicks in only when the driver was at fault.
When it comes to claims for loss of income, the amount varies greatly, depending on the potential earnings of each victim until he/she reaches retirement age.
Hence, I was bewildered by the decision of the court that road accident victims should be automatically compensated by insurance companies.
It is not the practice of insurance companies to pay out more than necessary or hurriedly, particularly in accidents where the victims may be at fault.
Therefore, victims would have to sue and file a claim for the amount sought although it usually takes several years for a court to finally award compensation, compelling insurance companies to pay. But insurance companies could appeal to a higher court, and some have successfully done so in the past.
But after this landmark decision, accident victims are more likely to be compensated even though some of the terms and conditions may be breached.
I certainly hope the legal fraternity, insurance companies or the General Insurance Association of Malaysia could clear the air for me and other interested members of the public.
YS Chan
- The views expressed here are the views of the writer YS Chan and do not necessarily reflect those of the Daily Express.
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