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do third party insurance cover driver's hospital?
A driver covered by a 3rd party liability insurance policy who is at fault for an accident is protected against their liability for death, injury, or property damage towards any 3rd parties involved.
3rd Party Liability insurance is the core component of all car insurance policies offered in Hong Kong, and is the mandatory minimum level of protection a driver needs to hold in order to receive registration for a vehicle to be driven on public roads.
The mandatory limits for coverage under Hong Kong 3rd party car insurance plans is HK$100,000,000 for any death or bodily injury, and HK$2,000,000 for damage to property.
3rd Party Car Insurance works as follows:
You are driving your car and are covered by a general 3rd party liability policy. While stopped at a red light, and in a moment of inattention, you take your foot off the break and the car jumps forward causing you to rear end the vehicle in front of you.
After the police are called, statements are taken, reports made, and claims submitted, you are determined to be at fault for the accident and consequently your insurance will be indemnifying you against your liability to the party you accidentally rear-ended.
The vehicle you rear-ended has suffered some damage and needs some work done at the garage. The costs of covering the damage to the vehicle will be covered under the HK$2,000,000 limit. Unfortunately, the other driver suffered severe whiplash as a result of the accident and sought treatment at the Hong Kong Adventist Hospital; incurring a HK$200,000 fee for an overnight stay and relevant tests.
Assuming that the other driver has no health insurance (to keep things simple), then once the accident case has been through the courts and you are determined to be liable (at fault) for the accident, then the insurance would cover your liability for medical expenses incurred by the other driver as a result of the accident up to the HK$100,000,000 limit.
If you required medical attention after the accident your 3rd party car insurance policy will not cover those expenses.
It is important to note that 3rd Party Liability insurance does not really cover you – you are the policyholder and the policy is protecting you against the costs you may have to pay following a car accident, but the benefit of the policy is basically for the other party involved in an accident. If you are at fault your insurance pays, if the other party is at fault it is there insurance which will settle.
Because determining the exact reason for a car accident can be difficult and time consuming, it is normal for 3rd party car insurance claims to take a significant length of time to finalize. Normally the accident will need to be prosecuted in court.
So, in answer to your question – 3rd party car insurance does not directly cover hospital bills, but depending on your place in the accident and the details of the accident itself, a policy may eventually cover the medical expenses of one of the drivers involved after a determination of who is at fault has been made.
Should you have any further questions about car insurance in Hong Kong feel free to ASK CCW!
Answered on: 13 February, 2019 16:00
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