Question from an IIABNY member: We have a client who made collision and Personal Injury Protection (No-Fault) claims against their own auto policy (provided by Company A.) Our client was rear-ended; the driver and passenger sustained injuries. Our client’s auto was deemed a total loss. In addition to the damages to the auto and the personal injury, she is looking for reimbursement for a car seat that was in the auto at the time of the loss. (I am not sure if the child was in the car seat at the time of the loss- there are no notes on that.)
Our client's insurer (company A) is advising that their own policy does not provide any coverage for the car seat, and she will therefore need to contact the other driver's insurer (company B) for reimbursement. Our client had our office fax an invoice to Company B on her behalf- a claim had already been set up by the other driver. Now company B wants to conduct their own interviews with our client and the driver/passenger of her auto and/or have paperwork completed before they will consider payment for the car seat (apparently, liability has not yet been accepted or determined.)
Our client does not feel she should have to go through this process with Company B since she already completed it with her own carrier- and I have to say, I was surprised her carrier 1) doesn’t consider the car seat “equipment” of the automobile; and 2) would want her discussing details of the loss with the other insurer (company B) not only from a liability standpoint but also from a customer service standpoint.
Answer: I’m curious as to why your insured’s carrier is denying coverage for the car seat. For purposes of discussion, I’m assuming that she bought the equivalent of the ISO Personal Auto Policy, PP 00 01 01 05, as amended by the Amendment of Policy Provisions – New York, PP 01 79 04 09. The Insuring Agreement for Part D – Coverage For Damage To Your Auto states, “We will pay for direct and accidental loss to ‘your covered auto’ or any ‘non-owned auto’, including their equipment, minus any applicable deductible shown in the Declarations…” (emphasis added).
Part D goes on to exclude some personal property exposures, including:
- Electronic equipment
- Tapes, records, discs, or other media
- Radar or laser equipment
- Custom furnishings or other equipment in pickup trucks and vans.
None of these exclusions appears to remove coverage for a car seat. In addition, since a car seat by definition is designed to be used in a motor vehicle, I think it’s reasonable to argue that it is a piece of automobile equipment. Consequently, without an exclusion, the policy should provide coverage. (I suppose an argument could be made for coverage under the insured’s Homeowners policy, but car seats are normally not left lying around the house. When put to their normal use, they’re in cars.)
Company B’s response seems excessive to me, considering we’re just talking about a $200 car seat. I think her own carrier should pay for the car seat, then subrogate against company B.
several years ago my son's vehicle was stolen, it was recovered but the car seat was taken. his auto carrier paid him the value of the car seat along with other itmes in the car and the damage done to car. Maybe, the insurance is out of state?
Posted by: Maria johnson | August 24, 2011 at 12:32 PM
But not every country follow these rules of claims,
Posted by: car lease tip | August 25, 2011 at 12:28 PM
Maria,
Unless the mandatory state amendatory endorsement somehow eliminates coverage for the car seat, I still think it should be covered, regardless of the state. Car_lease_tip, would the answer be different in the UK?
Posted by: Tim Dodge | August 26, 2011 at 01:38 PM
Yeah off-course we can claim, I was talking generally.
Posted by: car lease tip | August 29, 2011 at 11:31 AM
Yes, I must agree that not all countries obey such insurance policy. I'll keep visiting for more of your posts.
Posted by: Garage Equipment | December 27, 2011 at 07:37 AM