|
A client may
have breached an obligation in terms of the policy, but the claim
is repudiated, only if we can prove that Dial Direct has been
prejudiced by the client’s
action or inaction.
Prejudice means that the client has put
Dial Direct into a worse financial position.
For Example: A client submits a claim for an accident, which occurred while
the insured car, was parked in a parking area. We discover that the car was
not in a roadworthy condition at the time of incident as both front tyres were
bald.
The client has breached the obligation
to ensure that the car is kept in a roadworthy condition. However,
the claim will not be repudiated on this basis as the bald tyres
did not contribute to the incident. Dial Direct was not prejudiced
by the fact that the car was not in a roadworthy condition at the
time of the incident.
Example: A client submits a claim for an
accident, which occurred when he was unable to brake at a set of
traffic lights. The client collided with another car, which had
right of way because of the green light. Extensive damage is caused
to both cars. The engineer examines the car and finds that the
both front tyres are bald.
The obligation to ensure that the car is
in a roadworthy condition has again been breached. In this instance
the claim will be repudiated on the basis of this breach.
|
