Auckland resident Aries Chen, 41, finally received confirmation that her insurance claim would be paid after two months of uncertainty following a crash on January 2. Both her family’s Mazda CX-5 and Nissan Tiida, parked on a Bayswater street, were struck by another vehicle shortly after 6am.
The Response
The delay stemmed from the at-fault driver’s insurance status, as Chen understood the driver had defaulted on their premiums. Chen contacted Quest Insurance, the insurer identified by police, weekly but was informed the issue rested with their client’s non-responsiveness. Shortly after 1News inquired with Quest Insurance, AMI, Chen’s insurer, informed her the matter was resolved and payment was forthcoming.
The situation was particularly challenging for Chen, as the Nissan Tiida is used to transport her five-year-old daughter, who has chronic lung disease and cerebral palsy, to a specialist school 10 kilometers away in Glenfield. Chen stated her daughter is prone to asphyxiation and cannot be transported by taxi or other alternatives.
What are the rules?
In New Zealand, car insurance is not legally required. According to the Insurance Council of New Zealand, most insurers offer an ‘uninsured motorist extension’ (UME) to help protect policyholders in situations where the at-fault driver is uninsured or has defaulted on payments. This extension can waive the policyholder’s excess and protect their no-claims discount, provided the other driver is identified and acknowledges responsibility.
The Insurance Council of New Zealand stated that insurers often place policies on hold rather than immediately cancelling them when premiums are in arrears, but this can lead to delays in claim processing. They advise those not at fault to contact their own insurer as soon as possible.
Frequently Asked Questions
How long did it take for Aries Chen to receive a resolution?
It took two months for Aries Chen to receive confirmation that her claim would be paid.
Why was the claim initially delayed?
The claim was initially delayed because the other driver’s insurance company stated their client had defaulted on their premiums.
What type of insurance did Aries Chen have on the Nissan Tiida?
Aries Chen had third party insurance through AMI on the Nissan Tiida.
How often do insurance claim processes encounter similar delays, and what steps can drivers take to proactively mitigate potential issues?
