Mandatory Automobile Liability Insurance – reduction in compensation due to negligence
I was involved in a traffic accident at crossing. The Stop sign was on my road.
I made a request for insurance claim; for damage, the insurance company compensated \960,000 – deducted by 20% (max. compensation \1,200,000), and for injury, the insurance company compensated \520,000 – deducted by 30% (max. compensation \750,000) even though I was qualified for 14th degree.
I was not aware that there was reduction in an insurance compensation due to negligence.
What can we learn about it?
There is reduction in an insurance compensation because of at-fault-accident (when an insured is at fault).
- For damages（ compensation 1,200,000）, if it is determined to be at insure fault for ７０％~１００%, the compensation will be reduced by 20%.
If damages caused by the accident is estimated \1,300,000
\1,300,000＞\1,200,000（×０．８０＝ \960,000will be compensated
If damages caused by the accident is estimated \1,000,000
\1,000,000×０．８０＝\800,000 will be compensated
Please note that you will not be compensated for damages which you are at fault for 100%.
- For death and or injuries (specifically those involving aftereffects)
70%~80% fault =20 % reduction
80%~90% fault =30 % reduction
90%100% fault =50 % reduction
It is examined and determined by Liability Survey Office, and insurance company confirms it.
If you are dissatisfied with the reduction, you can certainly make a complain to the insurance company.