保險法Motor vehicle accidents: the role of insurance lawyers

As of 2023, 3,171,559 cars were registered in Queensland[1]. While newer motor vehicles are driving on the roads with improved safety features, it is unfortunate to say that with so many vehicles on our roads the likelihood of being in a motor vehicle accident increases.

A motor vehicle accident can have a wide-reaching definition, as it can be any sort of accident that involves a motor vehicle. The more common interpretation is considered to be where two or more vehicles collide (have a collision).

When a motor vehicle accident takes place, usually both vehicles will have a form of insurance. Sometimes there is confusion as to what level of insurance each party holds and what that might mean for the at-fault or not at-fault driver.

There are three forms of insurance road users will know about:

1. Compulsory Third Party
2. Third Party
3. Comprehensive

In Queensland, Compulsory Third Party (CTP) is part of all vehicle registration, which is a legislated scheme to ensure that all road users have access to personal injury cover. As this article focuses on property damage, there is no need for a further discussion on CTP.

Third party (TP) insurance means that you have insurance to cover the costs of damage caused to another person’s vehicle, but will not cover your own. Sometimes TP insurance is confused with CTP, however it is important to remember that TP insurance relates only to property damage and is cover for damage you cause to another person’s vehicle.

Comprehensive insurance provides insurance cover for damage to another person’s vehicle and covers your vehicle for any damage as a result. Considered the ‘gold standard’ or ‘fully insured,’ comprehensive cover means that should you be in an accident that is either your fault or not, you can claim with your own insurer.

Please observe the following example:

• Vehicle A and B both have comprehensive insurance.
• Vehicle A is stationary and Vehicle B is travelling behind Vehicle A.
• Vehicle B does not brake in time and nudges (collides) with the back of Vehicle A causing a dent.

In this very simple scenario, the owner of Vehicle A has 2 general options before them: they can make a claim with their own insurer or they are able to claim under Vehicle B’s policy.

For the simplicity of this scenario you may wonder why insurance lawyers would need to be involved, as it would be clear to anyone that Vehicle B is at-fault.

To add further context to the example:

• Vehicle A is an older European model vehicle.
• The back of Vehicle A is also painted in a special red colour.

Insurance companies will communicate with one another after a collision and determine first liability (who was at fault) and will then determine the quantum (amount of damages).

For this example the insurer of Vehicle A sends a bill to the insurer of Vehicle B for $5,000.00 for repairs. But the insurer of Vehicle B has assessed the repairs and believes that the cost should be $2,000.00.

Unfortunately both insurers are unable to come to an agreement and they instruct their lawyers to get involved.

Lawyer A will file a claim for the $5,000.00 and Lawyer B will file a defence to the claim.

The roles of these two lawyers now are to advocate for not only their respective insurer clients but also the owners/drivers of Vehicle A and Vehicle B.

These lawyers will carry the burden of evaluating all the evidence on hand and considering the viable options for each of their clients to reach a fair and just resolution.

For the purposes of our example, both lawyers negotiate and come to a resolution that $4,000.00 was an acceptable amount and the matter resolves.

The role of insurance lawyers, even in what appears to be such a simple scenario is crucial: they play a critical part to the evaluation and analysis of the issues at hand and work together to negotiate a reasonable outcome.

These lawyers are all covered by the insurance policy of the respective vehicles to do this.

If we take the example and say that both vehicles are uninsured then for Vehicle A to exercise their legal right to the amount they have paid for their repairs they would need to engage a lawyer, and vehicle B would need to engage a lawyer if they disputed the amount sought by vehicle A.

SLF Lawyers has a team of expert insurance lawyers who act for insurance companies and everyday people, assisting in matters just like both those examples.

We recommend that if you have been involved in a motor vehicle collision you contact your insurer first, we may already be involved helping you out.

文章作者 Alex Odman 我們布里斯班辦公室的。

[1] Department of Transport and Main Roads, specifically ‘cars’.