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 to reach 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.