Bellrock has recently observed an increase in motor vehicle fleet claims involving damage caused by third-party criminal activity, most commonly theft, and more recently, crimes involving juveniles.
Criminal activity is not wholly unexpected, but losses stemming from it do affect the way insurers assess and adjust claims.
A case in point
A client’s vehicle recently sustained damage during a collision after juvenile offenders fled the scene of a robbery. A claim was lodged with the client’s insurer and accepted, but an excess applied. The usual course of action where damage is caused by a third party is to provide the third party’s details to the insurer and seek to have the excess waived under the relevant policy conditions. Where the third party is a juvenile, however, their identity is suppressed by the courts and police under Australian law1. The client could not strictly satisfy the excess waiver conditions, which required actual identification of the party responsible for the loss. As a result, the insurer maintained that the excess applied per the policy terms, despite the claim being a no-fault matter as far as the client was concerned.
What this means for clients
Given the expected ongoing rise in criminal activity across parts of Australia, including a surge in juvenile crime, there are two practical considerations worth keeping in mind.
First, clients should carefully consider their chosen excess amount. Even in limited no-fault scenarios, an excess may apply, leaving a client out of pocket in circumstances where it would ordinarily be waived.
Second, securing third-party details at the scene of any motor vehicle accident remains important. In most situations, having those details on hand enables Bellrock or the client to advocate effectively for an excess waiver.
For more information on motor vehicle fleet insurance or to discuss your risk profile, please contact us.
