Motorist told to pay up for failing to inform insurer about composition fine

A motorist was told to pay back a sum of $54,000 to her insurer by the Court for not informing about a $200 composition fine she had to pay for knocking down a pedestrian.

Ms. Joanne Ho has assumed that she did not have to inform her insurer about the fine.

The District Court's ruling, however, is clear that errant motorists may end up paying for the damages due to the victim if they fail to promptly alert their insurers of composition fines in traffic accident cases.

Ms. Ho is made to pay back the compensation to the pedestrian and legal costs to her insurer, India International Insurance, after the company took her to Court, saying that her lapse repudiated its liability under the insurance contract. As such, the company has lost the opportunity to consider if an early settlement would have helped saved on costs.