Pedal to the metal: insurer pays for driver’s misstep
A driver who said he caused a three-car crash by accidentally hitting his accelerator will be covered despite his insurer claiming his account of the smash was not “truthful and accurate”.
The man told Auto & General he was in slow traffic on a freeway when he mistakenly pressed the pedal, hitting the car in front, which slammed into the next vehicle ahead of it.
The story was corroborated by one of the third-party drivers, who said they were rear-ended.
Auto & General obtained a quote for $7148 to fix “minor damage” to the claimant’s 2022 BYD ATTO.
But it said the claim was fraudulent after its forensic investigator found “no physical evidence” the cars were involved in an accident.
The investigator said rear damage on the vehicle alleged to have been hit did not appear consistent with an accident but rather with a loading issue.
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Auto & General also said footage from the insured’s dash-cam was missing. It suggested the man had removed this evidence.
The insurer raised concerns about the claimant’s recollection of the smash, noting he could not recall the specific location on the freeway or details about the other vehicles involved.
In a dispute ruling, the Australian Financial Complaints Authority acknowledges there were discrepancies in the evidence.
However, the forensic investigation shows the claimant’s car was involved in a low-speed impact on the date of the reported loss.
The man’s financial position would not have incentivised him to commit fraud, and his inability to recall specific details reflected poor memory, rather than lies.
“While there are some unanswered questions and inconsistencies, the insured vehicle sustained accidental damage in an incident with at least two other vehicles,” AFCA said.
“The insurer has not persuasively shown this loss should not be covered under the policy. It would not be fair to permit the insurer to deny the claim.”
Auto & General must also pay $1500 compensation for stress caused by its accusations of fraud and delayed handling of the claim.
See the ruling here.