QLD At Fault Accident Repayments

Discussion in 'Insurance Law Forum' started by Potzki, 13 October 2019.

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  1. Potzki

    Potzki Member

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    Hello,
    I have a family member who was recently in a car accident. They are at fault in the accident and their insurance had lapsed 2 weeks prior to the accident. They are employed, but currently not working due to a degenerative injury prior to the accident, and it is unclear if they are going to be able to go back to work in the near future, if at all. She has no savings and no real assests, and her car was written off in the accident.

    I have 2 major questions at this time;
    1. Is it unreasonable to offer to pay off the damage debt to the other vehicle at $50/month? My family member has very little income right now.
    2. I am looking at buying her a new car as she can't pay for one herself. Will this be an issue when it comes to the insurance company seeks payment for the damage? My family member has had a very hard time over the past 12 months with the death of her partner, as well as her injury and being forced from her home. I am looking at buying her a brand new car to help to get her life back on track. I am concerned that an asset of a $17,500 car might cause problems with the insurance company when she can't pay for the damage to the other car.

    Any advice you can give me would be greatly appreciated.
     
  2. Zerojay

    Zerojay Well-Known Member

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    Kudos to you, Potzki, for your compassion.

    If you look up the General Insurance Code Of Practice, section 8 is the guidelines covering financial hardship and how to apply for assistance. Generally an insurance company will be happy to enter into an instalment arrangement when there is a practical need to do so. I doubt the insurer would refuse to do so on the basis of you gifting her a replacement car. Suggest you ask them and if it will create a problem, then buy the car in your name and lend it to her.

    I do not give legal advice, just my opinion based on working for an insurance company for over 20 years.
     
  3. Zerojay

    Zerojay Well-Known Member

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    Are you sure she is 100% at fault. What are the circumstances?
     
  4. Potzki

    Potzki Member

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    Who is at fault is under dispute. I just wanted to get some info for if it is determined that my family member is at fault.

    Thank you for your advice. It has been really helpful and pointed me in a great direction to be informed.
     
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