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QLD Motorcycle Insurance Claim Issues

Discussion in 'Insurance Law Forum' started by Scottpm, 4 August 2014.

  1. Scottpm

    Scottpm Member

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    My son and I went for a ride at the weekend. My son riding his motorcycle slipped on the road and consequently knocked me off my motorcycle. He has comprehensive motorcycle insurance and I am uninsured. His insurance company is claiming that because we live under the same roof they will not pay for the repairs to my bike.

    We individually own each bike there are two individual registrations there is no cross ownership on either bike. In a police report, my son was held responsible for the motorbike accident. Do I have a case against my son's insurer? I am not about to sue my son as I do not hold him responsible for what I see to be an unfortunate accident.
     
  2. Sophea

    Sophea Well-Known Member

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    Dear Scottpm,

    It doesn't sound as if your son's insurer has a valid basis to be refusing the claim, I would start by seeking clarification as to precisely why they are refusing to pay and what specific clause of the insurance policy they are relying on. What they will and will not pay is determined by the policy.

    If you had an insurer they would have lawyers that would likely argue this on your behalf, and if necessary they would institute proceedings in your name against your son, and his lawyers would likely assume his defence - and they would sort it out themselves.

    Since you have no legal cause of action against your son's insurer - you have to sue him in order to get anything out of his insurance policy. Therefore, although it feels morally wrong, this is the way that things work and it happens surprisingly often. The insurer only owes an obligation to the person who is insured - not the person who is injured or suffers damage, although this is the ultimate outcome. The right to sue your son for damages is yours and yours only, but since he is insured, the insurer has agreed to pay for his liability in such an event. Before you commence proceedings against your son however I would recommend making sure that your son's insurer will cover his legal costs of defending any claim.

    Here are your options:

    1. Hassle the heck out of the insurer and fight their decision as far as you can;
    2. Obtain legal advice as to your prospects of recovering from your son's insurer to commence proceedings against your son,
    3. OR alternatively contact the Financial Ombudsman - they are responsible for dispute resolution with insurers. Here is their website link http://www.fos.org.au/about-us/what-we-do.jsp

    They provide information on the website regarding how to commence a dispute etc.

    Hope that helps.
     
  3. Scottpm

    Scottpm Member

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    Thank you Sophea I will take your advice and seek clarification from the insurer on the ruling prior to seeking legal advice. It seems to me as a layman they have written this in to say stop family members defrauding the insurer by conspiring to create an event for their own gain. As stated previously this was an accident documented by the police and proved to be no fault of mine in a police report I do not hold my son responsible but fail to understand why they will cover repairs to any one else but me because we live under the same roof.To any one reading this the insurance company involved is Insure My Ride.
     
  4. Scottpm

    Scottpm Member

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    They are claiming its a sublimation law brought in in the last two years prohibiting family from suing family how live under the same roof. .?
     
  5. John R

    John R Well-Known Member

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    Hi @Scottpm,
    You may consider asking your insurer for further information, e.g. a reference to the specific law or a specific clause in your policy.
     

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