The first question is not simply whether the employee was at fault. The insurer will ask whether the vehicle, driver and trip were covered and whether policy conditions were followed.
A valid external-risks or road-risk section may cover damage to the customer’s vehicle and third-party liability, subject to limits and excesses.
What the insurer will investigate
Expect requests for the driver’s licence, authority to drive, job card, trip purpose, route, police or accident report, photographs and statements. Alcohol or drug evidence and vehicle roadworthiness may be relevant.
Who pays the excess?
The policyholder is responsible to the insurer for the excess. Whether an employee can lawfully be held responsible is an employment-law question and should not be assumed or deducted casually.
The workshop should communicate with the customer, but avoid admitting liability or promising a settlement without insurer consent.
When workmanship also matters
If the accident was caused by a wheel, brake or steering component just worked on, the insurer may assess both road risk and defective workmanship. Preserve the component and do not dismantle further without agreement.
A technician conducting an authorised 10 km brake test rear-ends another car. The external-risks section may pay the customer vehicle and third party. A young-driver excess may apply. If the technician used the car privately after the test, cover could be disputed.
Questions an insurer will ask
- Was the driver licensed and authorised?
- Was the trip a permitted road test, collection or delivery?
- Did the trip stay within the radius?
- Was the vehicle roadworthy enough for the intended test?
- Was the incident reported immediately?
General information only. RMI requirements, fees and processes can change; confirm current requirements directly with RMI. Insurance cover depends on the insurer’s schedule, wording, limits, excesses and conditions.