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THE DRIVER of this VW Golf (bottom) was driving through the tunnel near Watervalboven on the N4 in December last year when at 07H00, he crossed the solid white into the path of the pictured oncoming timber truck. Tragically, the Golf driver died at the scene. The truck driver was unhurt but the damage to the vehicle was extensive. Repairs to the truck cost over R150 000 and the truck insurer, SA Eagle Risk Finance, in conjunction with PNM Hauliers tasked their insurance intermediary, Trucksurance Risk Services to recover not only the vehicle damage costs but also sue the Golf’s insurer, Santam, via intermediary, Brolink, for compensation in lieu of lost revenue due to the downtime incurred while the vehicle was being repaired. 
 

According to Locke Purdon, managing director, Trucksurance Risk Services, "PNM Hauliers paid the ‘excess’ and suffered consequential loss as a result of the accident. The final invoice for repairs was R158 723.29. The ‘consequential damages’ suffered by PNM Hauliers because its truck could not work for the period during which it was under repair were calculated at almost R100 000 for the 38 days that the vehicle was out of commission. Our calculations were based on some estimates using RFA figures." 

After several months of negotiations between the two insurance companies, a stalemate ensued with Brolink disputing the ‘consequential damages’ claim. "The saga continues and we have no agreement yet. The principle remains though – the cost of repairs is only the start of a cascade of expenses that will have a direct effect on cash flow within a short couple of months after the accident," concludes Purdon.