Question:
I have had a motor vehicle claim declined due to the driver breaching the reasonable care condition of the policy.
The policy states -
2.4 Reasonable care
The Insured must take all reasonable steps to protect the insured vehicle from loss and to avoid liability
The circumstances of the claim are that the driver dropped his cellphone into the passenger footwell, he attempted to retrieve it and in doing so drove off the road.
The insurer has therefore declined the claim by applying the reasonable care condition above.
I understand that using a cellphone whilst driving is breaking the law, would the insurer stance be the same if the driver had been reaching for something else?
Do you think this is a reasonable and fair application of the policy condition?
Are there any legal cases to challenge the insurer's decision?
Crossley Gates replies:
These policies are designed to insure negligent driving short of recklessness. A one-off transgression, even when it is a breach of the traffic regulations, is not usually enough.
Think of person who fails to give way at a give way sign and collides with a car legally passing by. This is a traffic offence but this does not give the insurer the right to decline the claim. The driver was simply negligent - nothing more.
Assuming this is the first claim under these circumstances, it is unlikely to breach the reasonable care condition because it is just negligent, not reckless.
