Write a Note on the Duties After an Accident or Loss

Question

Examlex · Accepted Answer

The Answer is When an accident or loss occurs, you must notify the company promptly, indicating how, when, and where it happened. Notice should include the names and addresses of any injured persons and any witnesses. You can notify your agent or call the company. You must also comply with the following conditions:

\bullet

Cooperate with the insurer in the investigation, settlement, or defense of any claim or suit

\bullet

Promptly send the company copies of any notices or legal papers received in connection with the accident or loss

\bullet

Submit, as often as reasonably required and at the insurer's expense, to physical exams by physicians it selects, as well as examinations under oath

\bullet

Authorize the company to obtain medical reports and other pertinent records

\bullet

Submit a proof of loss when required by the insurer
A person seeking uninsured motorists coverage must also notify the police promptly if a hit-and-run driver is involved and send copies of the legal papers if a suit is brought. The requirement that you notify the police concerning a hit-and-run driver is to discourage you from making such an allegation when, in fact, something else caused your accident. If, for example, you do not have coverage for damage to your auto but you do have uninsured motorists coverage, you may be tempted to use the latter after you fail to negotiate a sharp curve in the road. Having to report a hit-and-run driver to the police may deter you from making such an assertion.
If an accident causes damage to your car, or if it is stolen, you must also fulfill the following duties:

\bullet

Take reasonable steps after loss to protect the auto and its equipment from further loss (the company will pay for reasonable cost involved in complying with this requirement)

\bullet

Notify the police promptly if your car is stolen

\bullet

Permit the company to inspect and appraise the damaged property before its repair or disposal
The first duty listed means that you cannot just walk off and abandon your automobile after an accident. If you do, it may very well be stripped as an abandoned car. The second duty, prompt notification of the police in the event of theft, increases the probability that stolen property will be recovered. This requirement also reduces the moral hazard involved people have been known to sell a car and then report it stolen. The third duty, permitting company appraisal, allows the insurer to inspect and appraise the loss before repairs are made in order to keep costs down. If you could simply take your damaged car to a repair shop, have the work done, and then send the bill to the insurance company, costs would increase immensely

Write a Note on the Duties After an Accident or Loss

Definitions: