Unable to Locate Third Party Special Endorsement

The Unable to Locate Third Party Special Endorsement (formally titled "Motor Vehicle Damage Insurance Unable to Locate Third Party Special Endorsement") is a commercial add-on policy designed specifically to waive the absolute excess penalty under own damage cover when an at-fault third party cannot be identified. Under the prevailing commercial motor insurance comprehensive reform framework, this coverage is not bundled into the base own damage policy, but offered as an independent optional add-on for motorists to take up based on their daily driving and parking environments.

Insurance Liability and Scope of Coverage

The core purpose of this endorsement is to bridge the compensation gap in standard own damage policies during specific untraceable third-party scenarios, structured as follows: 

Specific "Unable to Locate Third Party" Scenarios: 

In daily driving, vehicles frequently encounter hit-and-run scratches whilst parked, cracked windscreens caused by loose road debris without an identifiable culprit, or side-swipes during transit where the other motorist flees the scene. Under insurance principles, whilst a liable third party legally exists in these accidents, their identity or whereabouts cannot be determined due to objective circumstances. 

Under conventional own damage policy terms, insurers typically impose an absolute excess (conventionally around 30% across the industry) on the total assessed loss for incidents where a third party cannot be traced. 

Excess Waiver Function of the Add-On Cover: 

By taking up this "Unable to Locate Third Party Special Endorsement" alongside standard own damage insurance, policyholders are exempted from the 30% absolute excess. The insurer will indemnify the loss in full based on standard own damage payout terms (within the sum insured limit), effectively eliminating out-of-pocket expenses for the car owner.

Policy Exclusions and Underwriting Requirements

To mitigate moral hazard and ensure claims compliance, this coverage enforces strict application prerequisites and policy exclusions: 

Specific Exclusions and Reporting Prerequisites:

Mandatory Prompt Reporting and Scene Preservation: Following an incident where the third party cannot be traced, the vehicle owner must immediately lodge a report with the traffic police and obtain an official police report or accident certificate. In the absence of a valid police report, insurers reserve the right to repudiate claims under this special endorsement.

Fraudulent Claims and Collusion: Any intentional fabrication of untraceable third-party scenarios or fraudulent collusion to claim insurance payouts constitutes an unlawful offence. In such cases, insurers will not only repudiate all liability but will also pursue legal action in accordance with the law. 

Premium Factors and Underwriting Advice:

Premiums for this endorsement are generally underwritten based on parking risk exposure, the insured's claims history, and the vehicle segment. For car owners who regularly park in open-air areas, lack designated parking bays, or frequently commute through demanding road conditions, this add-on significantly enhances the completeness of their motor coverage.

Claims Procedure and Verification Management

Accident Investigation and Evidence Collection:

Upon discovering damage without an identifiable at-fault party, motorists should avoid moving the vehicle from the scene (or pull over to a safe area if on the road) and immediately contact their insurer's claims hotline. Concurrently, owners should gather supporting evidence such as CCTV recordings, dashcam footage, or eyewitness statements to assist the authorities and insurance adjusters with the on-site survey.

Loss Adjustment and Claim Settlement: 

Once the insurer verifies the claim's authenticity, confirms the untraceable third-party scenario, and verifies the endorsement's validity, repair costs will be assessed according to standard own damage terms with the absolute excess fully waived, allowing the claim to be settled smoothly.