insurer fails to pay - please advise

jaykay · 02-28-2007, 10:25 PM

Hi there...

I have a comprehensive insurance policy for my personal car which has been insured for over 5years. My brother uses the car daily to go to college during the week.

My mum also drives and due to health reasons joined and became a member international health product group, since certain products were beneficial to her and enabled her to get a discount of the products.

Last month she went went for a conference convened by this group. The car was stolen. The insurance refuses to pay out because they claimed it was for business use and has to now go to ombudsman.

I want to just add, she has not sold any products to anybody nor received any income, nor is a registered business, nor have we ever claimed any expenses for the vehicle to so as to warrant business use.

Does anyone have any advice on this

healthagent · 02-28-2007, 10:33 PM

What country are you from? I'm sure the laws would be different from U.S. laws.

*ToddC* · 03-01-2007, 12:19 AM

As John, mentioned... the coverage can change greatly based on the area (country) the loss occured in. One thing I'll mention... you need to obtain a written denial. That denial should quote the portion of the policy excluding the coverage. Read that exclusion and see if it would apply to a vehicle parked at the time of the loss. That is... the vehicle technically was not being "used" in business as it was parked at the time. Everyone drives themselves to work. Vehicles can be stolen from parking lot's while we work. This does not mean we were using the vehicle in the course of a business. That would be something like delivering pizzas or using the vehicle as a taxi.

jaykay · 03-01-2007, 03:53 AM

Hi there thanks for the prompt response....

Im in the UK, but the vehicle and my family is in South Africa,,,,, so can you imagine how frustrating this is for me... laws may differ but im sure fairness will prevail in the end.... but thanks for the advice

arnguy · 03-01-2007, 11:33 AM

I do not know this as a fact, but I feel certain that there must be a governmental agency in South Africa (and in the UK, as well) that governs the insurance industry. In other words, a public officer that is equivalent to an Insurance Commissioner which every state in the U.S. has. I would suggest filing a complaint with the proper governmental authority.