SA Employee Damaged Company Car - Who Pays Car Insurance Excess?

[JasonL]

An employee crashes one company car into a second company car which is parked in the company car park. The employee admits fault but believes the excesses are an expense the company should bear.

Can the employer insist that the employee pay the 2 car insurance excesses?

 

[Ivy]

Hi Jason,

It depends on the company's policy. It doesn't seem unreasonable for the party at fault to bear the cost of the excess.
Why do you think the company should bear the expense? Is there some other information you can provide?

 

[JasonL]

Actually, I personally believe the employee should pay. This incident happened at my place of employment, and I know the details. The employee had parked the vehicle facing the wrong way. He simply jumped in it, and reversed straight into the vehicle parked about 1 metre directly behind him. He could've driven forward. It was complete stupidity.

 

[Perp]

If the employee was driving the vehicle in the course of their employment, the employer is vicariously liable for any damages resulting from the employee's negligence, per Broom v Morgan.

 

[Sophea]

I agree it depends on what it is employee's employment contract or the company's policy incorporated by reference into that contract.