No cash for your crash: BMW driver livid after insurer parks payout

A BMW driver says he’s left with hefty monthly instalments on a written-off car gathering dust in his garage.

A BMW driver says he’s left with hefty monthly instalments on a written-off car gathering dust in his garage.

Published Jan 16, 2023

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A Cape Town motorist involved in a crash he claimed was not his fault, is seeing red.

But the ombud has backed the insurance company who rejected his claim.

Erlo Goshai is now warning other motorists to read the fine print when entering into contracts with their insurance company to make sure they are adequately covered.

Goshai said he has been in a fight with his insurer, Insurance Underwriting Managers (IUM) since he got into an accident with his luxurious BMW M235i on March 7, that has since been written off.

However the ombudsman, Relebogile Mashego found that IUM had not been at fault for rejecting the claim.

The company’s CEO, Antonio Iozzo, said the ombud’s report was clear and they won’t entertain any other queries.

The 35-year-old said he was driving along Marine Drive and turning into Blaauwberg Road, when he hit a curb, veered off the road and drove into a pole.

He further claimed that he “smashed” the brake pedal with “both feet” which led the vehicle to come to a complete stop.

He and his two passengers were not injured, but, he said, “my arm was twisted in an unnatural way,” adding that his girlfriend managed to re-set it.

As pedestrians screamed, Goshai "wiggled“ out of the vehicle, trying to make contact with his insurance broker, ”but she didn’t answer her phone,“ he said.

“I then walked home which was three roads away ... it’s a two minute walk. I left the scene, cause I was in shock and my phone’s battery was flat, so I had to charge my phone and then I went back,” he said.

Goshai, who was a IUM client for a decade, said the insurance company hung him out to dry.

His insurer informed him that he had violated one of its clauses. The clause read: “Duty of care: You must take all reasonable precautions and all reasonable care to prevent or minimise loss, damage, injury or liability.”

In November Goshai laid a complaint to the office of the Ombudsman for Short Term Insurance, who, to his dismay, had no better news for him.

Mashego said: “The submissions made by the insurer regarding the breach of the duty of care remain unchallenged, or at least, there is no compelling basis to fault the insurer in this regard.”

Goshai said it’s utter nonsense and that he was vigilant.

“They’re making a fool out of me, it’s my car and it’s my money,” he said.

Goshai said he was still forking out monthly instalments of R10 500 on a car he cannot drive, and now makes use of his Opel Corsa bakkie or uses e-hailing services.

“I just want people to know that these insurance companies are big and for almost 10 years I didn’t ask any questions when they were too happy to take my money ... now that I need them, they’re not coming through,” he said.

Weekend Argus