Options 1 Your insurer is not responsible to compensate the passenger of the other vehicle for the hospital expenses. This is the responsibility of the Road Accident Fund

Question 2

• Your client, John Smith, reports that they collided with another vehicle and that their passenger in the other vehicle has been taken to hospital. John completes the claim form and states that they told the other vehicle driver to obtain three quotations and submit them to John for settlement by his insurer. You mention to John that it seems that he admitted liability for the accident and that his insurer could deny liability for all passenger injuries and damage to the other vehicle. John is not happy with your comment and asks why, when he considers that he caused the accident, his insurer could deny liability. After all, John did not stop at the red traffic light. How should you respond to John?

OPTIONS

• 1 Your insurer is not responsible to compensate the passenger of the other vehicle for the hospital expenses. This is the responsibility of the Road Accident Fund.

• 2 You should not have driven through the red traffic light. Insurers do not cover accidents caused by their clients who break the law.

• 3 Liability insurance only operates if the insured does not admit, nor deny, liability. It is up to the insurer to make the decision due to their vast experience of settling claims.

• 4 You should not have told the other driver to send you 3 quotations. Your insurer only needs 2 quotations and then from their own approved repairers.

• (The correct answer to this question is option 3)