‘Anything can manifest at anywhere at any time’ – Author
After the June 3, 2015 disaster which changed into the peak of all motor coverage claims in Ghana at the least within the past decade, some motor insurance clients were unable to access their insurance claims and this changed into a source of fear to many an insured character / entity.
Some car garage proprietors / vehicle restore workshops in the capital have been stated to have allegedly persuaded their customers, whose motors had been lost to the floods, to don’t forget them as total loss (i.E., without reimbursement from the garages), describing the reason of the loss as a natural disaster or an act of God.
Victims who resorted to a number of their insurers had the surprise of their lives whilst their insurers showed them ‘the rule e book’. Letting move of costly luxurious vehicles ought to simply cripple a few people and in a few instances company customers!
Indeed, purchasers have an identical obligation to continually take self-precaution (e.G., insurance), as this could no longer most effective provide them safety or security towards sudden losses, but additionally the peace of thoughts to recognition on different elements of lifestyles.

 


A current occurrence
A pal sent his car to a car restore workshop for some paintings to be completed on it. By day after today, news got to him that his vehicle had been completely burnt after a mentally deranged guy torched a number of cars at the workshop along with his.
As complex as the situation was, there has been suspected arson with the aid of a madman! Confident that he might fall on the coverage employer to make a declare, he become disappointed when the coverage Company advised him they could not pay the claim as soon as the incident happened in the premises of a restore workshop! As it’s frequently said, ‘it does no longer rain; it pours’, the vehicle was insured beneath a third party cowl.
Additionally, it’s far technically unacceptable for any coverage enterprise to pay claims on losses happening in a workshop as it’s far predicted that the shop owners would have their personal coverage in region to take care of a number of these accidents.
As destiny would have it, the workshop didn’t have any coverage and didn’t even recognize there was the want for them to do so. He misplaced the car without a fault of his and reimbursement from the workshop owner!

What we have to understand
In a preceding article on this column, I posited that, with motor coverage, whenever a car is checked in for servicing or upkeep at a workshop, which can take a few days, months, the coverage cover on the car AUTOMATICALLY CEASES.
In this regard, it’s far the insured person’s duty to officially notify his / her insurers to both suspend cover on the vehicle and return top class or enlarge the expiry date of the duvet by means of the variety of days the car remains on the workshop, for the reason that insurer might not be obliged to pay claims that may stand up even as the car is at the workshop, within the custody of the service provider.
What need to automobile wo insrkshop ownersure?
It is apparent that the insurers of the workshops would now not pay 1/3 celebration claims in the aforementioned state of affairs, as the probably coverage in place on the time of the hearth can be a standard fire policy with extension to cowl flood and other allied perils.
The insurers would not on this condition count on a risk which is not catered for. It is consequently the responsibility of each automobile repair workshop owner to reap a blanket public liability coverage to cover the subsequent:
Professional Indemnity Cover – it is anticipated that these workshops gain a Professional indemnity cowl for all its experts to shield them towards any liability at regulation inside the discharge of their duties.
Public Liability Cover – workshops of automobile companies owe motor car owners a obligation of care as soon as the automobile enters their premises and in their custody hence, the expectancy that they could have this cowl to compensate any car owner because of damage to their vehicle.
Do the workshop owners know this?
Even though this facts is made recognised to the properly organised vehicle organizations, a number of them nonetheless visit the quantity of issuing disclaimers as pressure majeure to the impact that they might now not be held in charge within the occasion of any direct or indirect harm completed the car and this includes whilst the automobile is being avenue-examined.
While the number one recognition of the disclaimer is in opposition to valuables kept in the car at the time of the loss, though, most of the well-installed auto firms take obligation for unintentional harm on clients’ cars for the duration of street-tests or another damage throughout repair works.
Speaking to a few renowned vehicle dealers, they referred to the truth that it’s now not continually the case that they do no longer need insurance but a few insurers aren’t willing to offer cover for their garages because of the excessive dangers related to working in a storage or in certain high threat and / or flood susceptible environments.
Words of recommendation to members of the motor insuring public
Generally, motor injuries may be caused by the proprietor/person or someone else. At the workshop, however, one’s motor automobile could get burnt, broken or carried away through flood waters.
In any occasion, once the loss befell at the same time as the car is at the storage or workshop, one will handiest get compensated if the garage has the ideal coverage, as mentioned above.
The manner forward
As required by way of the Insurance Act 2006, Act 724 that every one industrial homes are insured with an insurance agency towards the risks of fall apart, hearth, earthquake, hurricane and flood, and an coverage coverage issued for it, car workshop proprietors must be aware that they fall under this class.
Many vehicle proprietors have needed to go through this destiny in years long gone by and plenty of preserve to go through similar destiny as did my buddy.
For starters, the NIC and the Ghana National Fire Service project force need to throw their lenses on engaging with storage / workshop owners such as what we name ‘fitting shops’ and provide them good enough schooling in this all vital issue, which can considerably transform their operations, whiles increasing the insurance attain in Ghana.
When the risks associated with their offerings are transferred to insurers, their clients who may additionally suffer losses because of their vehicles while they continue to be in their custody could be paid their claims.
That notwithstanding, workshop proprietors ought to also take significantly the safety requirements within their premises as this would make it simpler for insurers to accept the risks.
Similarly, the insuring public need to continually make sure they notify their insurer every time they’re going for upkeep / servicing. This should be completed among the day of turning in the car to the carrier centre and the day it might be prepared for delivery. Besides, it’s miles usually vital to invite questions!
Until subsequent week, that is ‘Insurance from the eyes of my thoughts”

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