Motor Insurance Quotation Form
Accident and Claims Outline
The information contained herein should not be construed, in any way, as forming advice on how to proceed in the event of an accident. The following pages contain information explaining what typically happens in Hong Kong with regards to accidents/claims and does not reflect the views, mission, or practices of Kwiksure or Pacific Prime Insurance Brokers.
In the event that you become involved in an accident, there are certain protocols that you should follow.
- - What to do in an Accident
- - After an Accident/Repairing your Vehicle
- - How to make a Claim
- - Small Claims
- - Large Claims
- - How much will my car depreciate?
- - Cost of Parking in Hong Kong
What to do in an Accident
In the event that you are involved in an accident there are a number of things that you should remember to do. Below we have provided some guidelines on what to do in an accident:
Call the Police : As soon as the accident has occurred you should call the police who will then be able to provide a report on the situation.
Take a picture : Take a picture of the vehicles involved in the accident as well as any skid marks on the road, or damage to the vehicles. These pictures can be useful later, and provide additional support to the claim.
Wait for the police to arrive : Wait for the police to arrive at the scene. Do not move the vehicles unless instructed to do so by the police.
Exchange insurance information with the other driver : Make sure you obtain the insurance information of the other drivers involved in the accident. You may be asked to provide this to your insurance company later.
Once the police have arrived, follow their directions : It is important that once the police have arrived that you follow all their directions and answer all their questions accurately. Remember that you still should not admit fault.
Obtain a copy of the police report : When the police have investigated the scene and made their observations, they will compile a report on the incident. It is extremely important that you obtain a copy of this report.
Contact us : Contact us as soon as you are able to do so. In many cases the insurance company can start to process a claim before the police report has arrived, provided a completed claims form is supplied to them. Our claims team can help assist you submit your claim after an accident.
It is important that if you are in an accident that you never admit fault. An admission of fault before the police have determined the cause of the accident can be seen by the insurer as 'contractual liability' or liability of the policyholder assumed under an agreement which would not normally have arisen. It is important to note that contractual liability will normally be excluded from coverage under a motor vehicle insurance policy.
If you are involved in an accident you should notify us, or your insurance company directly, within 7 days of the incident. This helps to ensure that any claims are made in a timely and efficient manner.
For a description about the way claims and accidents are typically handled in Hong Kong, please click here.
For more information about what to do in an accident, or to receive a free motor vehicle insurance quote, please contact us today. After an Accident/Repairing your Vehicle
Once the accident has happened and the police have left the scene you are typically able to leave with your vehicle, provided no major road traffic offence has been committed. Should your vehicle be damaged you will need to get it repaired. Here is what you should do in this situation:
- Take your vehicle to a garage or the dealership where it was originally purchased.
- Obtain a quote for the cost of any repairs than need to be made.
- Send the quote to the insurer/broker with a completed claims form.
It is extremely important that you do not authorize any repairs to your vehicle until the loss adjuster has completed his assessment.
Garages and Dealerships in Hong Kong will typically provide a repair quote that is 30% above the normal cost if they know it is an insurance claim. It is the loss adjuster's job to come to an agreement with the repair facility over the costs of any repairs.
Once the loss adjuster and the garage have come to an agreement over the costs of the repairs to the vehicle, a document will be provided to the policy holder showing the repair costs minus any excesses and betterments that may be applicable to the policy.
This document must be signed by the policyholder and returned to the insurer before repairs can be made.
All costs of the repairs (minus excesses and betterments where applicable) will be paid directly by the insurance company to the garage.
When the repairs have been completed, the policyholder must then sign a form, provided by the garage that states all work on the vehicle is done before it is allowed to leave.
The insurer may allow a garage to start repair work based on a fax copy of the claims form, even if they do not have a copy of the police report.
If all the documents are provided in a timely manner, and the process goes smoothly, then repairs can typically start 3 days after the claims form has been completed.
Notes on Dealerships and Garages in Hong Kong
Named Dealerships and 'High Profile' garages will typically charge HK$ 500 a day for leaving the car with them while waiting for repairs. If the repair work is completed with them then this 'housing' fee is normally waived, however if the policyholder (or the insurer) decides not to proceed with the repair work through the garage, then the fee is usually applicable. It is important to note that the insurance company will not pay this fee.
Non-authorized dealers and garages will typically charge up to 50% less than a named dealership or high profile garage. It is important to note that even non-authorized dealers will over price the repairs if they understand that it is insurance related, due to the fact that the loss adjuster will bring the cost down.
If you initially tell the garage that you will be paying for the repairs privately, or in cash, then you may be able to receive a significant discount on the costs of the work. However, this may not always be an option. How to make a Claim
At Kwiksure we aim to provide you with the most comprehensive policy support available. When you work with us you have access to our expert claims department who will be able to assist you with any claims that you make, acting as your point of contact with the insurance company.
In the event that you have to make a claim here are some simple guidelines to follow:
Contact us : In the event that you need to make a claim contact us as soon as possible. We will then confirm your contact details and send you the necessary documents to be completed.
Fill out the forms and documents that we provide : When you have received the documents that we have sent you please fill them out and return them to us as soon as possible.
Return the documents : When we have received your completed claims forms we will then pass them on to the insurer and keep you informed as to the status of your claim.
Our claims department helps to make the claims process for our customers extremely easy. By liaising with both our clients and the insurer we help to make the claims process as smooth and efficient as possible.
Things to remember
When you make a claim you will be asked to complete a claims form and return it, along with some additional documents, to us in order for processing. One of the documents that you must obtain in the event of an accident is the Police report concerning the incident. This document will help speed up the claims process and ensure that you are reimbursed as soon as possible. In the event that we need any additional documents we will notify you when we send out the claims forms. In addition to completing the paperwork it is important that you make copies of everything that you have sent to us or the insurer. This is important for your records, and ensures that there are additional copies of the documents in the event that your documents are lost.
We aim to make the claims process as easy as possible and our relationships with the insurance companies that we work with mean that you will always have the information about your claim when you need it.
For more information about Claims, or to receive a free quote, please contact us today. Small Claims
In the majority of road accidents in Hong Kong the damage caused to each vehicle involved will typically be less than HK$ 15,000. You may be able to settle a small claim directly with the other party; however, not involving your insurance company may pose a potential risk. If the other party, at a later date, comes back to claim further damages (possible personal injury claim) if you have not notified your insurance company within the proper time frame then they are entitled to deny the claim.
If you are at fault
It is not unusual for drivers to settle small claims independently of the insurance companies. In this event you may decide to pay for the costs of repairs to your vehicle by yourself. You may also agree to repair the damage to the other driver's vehicle without involving their (or your) insurance company.
This approach is often condoned by the Hong Kong police if the accident is not the result of a driving offence, but they will not explicitly state this.
There is, however, significant risk when using the aforementioned approach to settlement. This pertains to the fact that if the accident was your fault, then the third party may come back demanding additional compensation, typically in relation to a personal injury claim.
If you decide to settle without involving the insurance companies then it is advised that you require the other party to sign a legally binding disclaimer waiving all rights to claim, and that the settlement is 'full and formal'. It is important to note that by settling there is no admission of liability for the accident.
If other party is at fault
If a third party is at fault in a small claims situation then it is typical for drivers to try and achieve a quick cash settlement for repairs to the vehicle.
In this situation you will still need a liability disclaimer from the Third (other) party so they cannot come back to you with a 'counter claim'
A quick cash settlement, in either situation, can be an effective solution to what has the potential to become a long drawn-out process. One of the benefits of settling a claim without involving the insurance companies is that you are able to protect your No Claims Discount.
The information contained herein should not be construed, in any way, as forming advice on how to proceed in the event of an accident. This page contains information explaining what typically happens in Hong Kong with regards to accidents/claims and does not, in any way, reflect the views, mission, and practices of Kwiksure or Pacific Prime Insurance Brokers. Large Claims
A large claim is a situation where damage to the vehicle(s) exceeds HK$ 15,000. Below we have outlined some of the more typical approaches used in regards to large claims in Hong Kong.
Assignment of fault/blame
In a large claim where there is no disclosure of liability from a third party it will be almost impossible to recover any money from the third party insurer without the police being involved in the situation.
When police attend an accident they will prosecute in 99% of cases. This prosecution is, generally, not serious and will typically not affect your driving license unless a serious road traffic offence has been committed. However, by prosecuting an individual involved in an accident the police have assigned blame and decided who is at fault. Insurance companies in Hong Kong will follow the Police conviction in regards to assigning fault, however if there is no prosecution then it becomes virtually impossible to settle the claim.
For very minor cases the police will normally not want to prosecute. If the damage is small then they may see a prosecution as a waste of time. If you are innocent and the third party involved in the incident will not settle in cash, you should insist that the police prosecute the other driver, which will then normally happen.
Prosecution and reimbursement
A prosecution by the police will normally take up to 3 months until a conviction. Once the prosecution is completed the insurance will typically take 3 weeks - 6 months to provide reimbursement, depending on the quality of the other driver's insurance company.
If you have an accident where it is not your fault and the other driver does not settle in cash, then it will normally take between 3 and 9 months for you to receive reimbursement.
If your policy renews during the claims process, then you will normally lose your NCD benefits, but this can be reinstated, along with any overpaid premiums, once the other insurance company has settled the dispute.
The information contained herein should not be construed, in any way, as forming advice on how to proceed in the event of an accident. This page contains information explaining what typically happens in Hong Kong with regards to accidents/claims and does not, in any way, reflect the views, mission, and practices of Kwiksure or Pacific Prime Insurance Brokers. How much will my car depreciate?
There is no standard rate for vehicle depreciation and many insurance companies will calculate the depreciated value of your car differently. A typical example of depreciation for a brand new vehicle can be seen below:
- 1 year after purchase: - 20 to 30% of original value
- 2 years after purchase: -25 to 40% of original value
- 3 years after purchase: -30 to 50% of original value
- 4 years after purchase: -35 to 60% of original value
- 5 years after purchase: -40 to 70% of original value
- 6 years after purchase: -45 to 80% of original value
The reason for the disparity in depreciation rates is the fact that different makes and models will depreciate differently. For examples, Japanese cars (Honda and Mazda) will depreciate faster than those made by European manufacturers (Volkswagen and Mercedes Benz). Vans (light goods vehicles) and BMW's will depreciate slower than any other type of vehicle and retain their original value for longer.
This disparity in depreciation is the reason that a Honda manufactured in 2000 may only cost HK$ 20,000 - 30,000, while a BMW made in the same year can continue to fetch a price of HK$ 100,000 - 150,000.
If a vehicle has been involved in an accident or is not in good condition (has had body work done or rust is evident on the under carriage) then the price can be significantly lower than the depreciation levels stated above.
If you would like to get more information about how much your vehicle is worth, or how much it has depreciated since the original purchase then it is advisable to obtain an independent appraisal or to check local dealership websites. Cost of Parking in Hong Kong
Hong Kong, along with Macau and Monaco, is one of the most densely populated places on earth with approximately 6,407 people per Square Kilometer. This is evident in the city's skyline and the mass of skyscrapers and high rise residential buildings attest to the fact that there is limited space. As such, it follows that finding a place to park your car will also be expensive due to the limited parking facilities. Below we have given you a guide for what you can expect to pay in terms of parking.
Private Parking Sale/Rent
There are options to purchase/rent a residential parking spot all over the city. Costs will fluctuate depending on the location; however the rates will usually be between HK$ 1,500 - 5,000 a month for a rented parking space in the city.
If you would like to purchase a parking space your options will be much more limited than renters, however the sales of parking spaces are available, and depending on the area can start at HK$ 250,000 and go for much higher.
When you are out and about you may want somewhere to park your vehicle for a few hours. There are numerous parking garages located throughout the city that are typically run by third party organizations. There are no fixed parking prices at the garages but costs will typically range from HK$ 15 - 30 per hour.
Depending on the time of day and the length of your stay the cost of parking your car per hour can be much more, or much less. Many parking garages will be located close to supermarkets or shopping centers and will give you a discount if you have spent a certain amount of money. Make sure you are aware of the discounts available to you in your area.
It is important to note that some parking garages will only accept an octopus card or credit card as payment for parking there.
Street Parking is much harder to find than a private parking space or a parking garage, but it is still available. Street parking can be free in some areas of the city, however, most free spaces are being turned into metered 'octopus' spaces. These will require an octopus card to use and depending on the area that you are in, will typically cost between HK$ 10 -20.
There may be restrictions as to how long you may park in these spaces, or times when you do not have to pay. Pay close attention to all road signs and the meters and understand the limitations on parking there.
Parking a motorbike is much easier than parking a car. Almost every area of the city will have bike parking ranks that are free to use and have no restrictions on how long you may remain parked there. It can be risky leaving your motorbikes at one of these ranks for a long period of time however, and the possibility of theft is high.
There are a number of options for parking your vehicle in Hong Kong. Take a look around the area where you live and decide which option would be best for you.