【Traffic Accident Handling Guide】When to report to insurance? Including settlement agreement template | Detailed explanation of process and compensation time

Traffic Accident / Collision Handling Methods

A car collision / traffic accident can be divided into three situations: "you hit another vehicle / person," "another vehicle hits you," and "you hit another object (self-crash)." Regardless of the situation and the severity of the accident, the initial response steps are the same:

1. Stay Calm

It sounds like a cliché, but many people forget this point after a collision, and are dominated by panic or anger, which can lead to making wrong decisions or further escalating the situation.

2. Check if anyone reports being injured

In addition to yourself, you should check if there are any injuries among the passengers in the car. It is worth noting that for many people, physical trauma or sequelae only begin to appear a few days after the collision, so it is recommended that drivers be cautious and report an injury even if they have minor discomfort such as dizziness. If someone is injured, you must immediately report to the police.

3. Stop the car, get out when safe

Drivers should not drive the car to another location, because according to the Road Traffic Ordinance, unless the scene is dangerous, you or anyone else should not move or interfere with the vehicles involved in the accident without the permission of a police officer. The driver should stop the car, turn off the engine, pull the handbrake, get out and move to a safe location after ensuring the road conditions are safe, or stay in the car to await rescue.

Should a traffic accident be reported to the police or settled privately?

If someone reports an injury, animal injury or death, or involves serious property damage, the driver should call the police for help when safe, and then claim compensation from the insurance company. Since the claim amount can be astronomical, private settlement should absolutely not be chosen.If it is a minor accident (e.g., a scratch on the car body) and no one is injured, both drivers can decide to settle privately or claim compensation from the insurance company.

Reporting to the Police and Reporting to Insurance: Pros and Cons

Whether choosing private settlement or reporting to insurance, Kwiksure recommends that drivers always report to the police first.

Pros

Although according to the current Hong Kong law, drivers are not obliged to report to the police if the collision does not involve injury or death, reporting to the police at least provides a case file number, which relatively protects both drivers and makes it easier to pursue legal action if someone goes back on their word or defaults later. Some insurance companies also want clients to report to the police for record purposes to prove the authenticity of the claim.

Cons

Reporting to the police requires giving a statement at the police station and waiting for a court hearing for the judge to rule, which takes considerable time and effort. Even if you are ultimately ruled in your favor, it takes a period of time before you can successfully receive compensation.

Private Settlement: Pros and Cons

Pros

The benefit of private settlement is that it can save the potentially lengthy claim process later on, and will not increase next year's premium or affect next year's NCD/NCB No Claims Discount. If the claim amount is lower than the "deductible," private settlement can also save the driver money.

Cons

Once both parties decide to settle privately, it means you have forfeited the right to claim compensation from the insurance company in the future! If the other driver pursues legal action later (e.g., the other party suddenly develops sequelae afterwards and sues you for astronomical compensation for personal injury), the insurance company has the right to reject the claim.

Private Settlement Handling Procedure

Regardless of who caused the car accident, you should try to stay calm and negotiate a mutually acceptable settlement amount with the other party.

Most importantly, you should ask the other party to sign a legally binding traffic accident settlement agreement, stating that the other party is willing to give up all rights to pursue compensation for the accident, listing information such as time, people, and location, and confirming that the liability for the accident has been "completely and formally" resolved. A template for the traffic accident settlement agreement is detailed below.

At the same time, you can take photos and videos as a record to document the condition of the car after the collision and prevent someone from exaggerating the extent of the damage later.

Detailed Procedure for Car Insurance Claim

Record Personal Information and Police Report Number

The party wishing to claim compensation should first request the police to formally investigate the case. The police will record the contact information of both parties (including name, contact phone number and address, license plate number, driving license number, insurance company, and policy number, etc.) and conduct on-site investigation. Both drivers will each receive a police report number.

Report to the Insurance Company within the Time Limit

At the same time, the driver should formally report to the insurance company with a paper or electronic form within 24 - 48 hours of the accident (according to the time limit required by the insurance policy) (Note: Notification via phone, WhatsApp, or email will not be considered valid reporting!).

Give a Statement at the Police Station

Within one month from the day of the accident, the police will ask you to return to the police station to give a statement. You can call to make an appointment with the police report number. Note that the two parties to the accident will give their statements separately and will not meet.

Investigation Time

The police usually need 3 months to 1 year to conduct an investigation, and afterwards, most cases will lead to prosecution against one of the parties. Unless someone seriously violates traffic rules in the accident, the general charge will only be a relatively minor offense such as "careless driving." The police will prosecute the people involved in the traffic accident according to the circumstances of the accident, and issue a "Notice of Intended Prosecution" to all involved parties. The driver who receives the notice must appear in court, and the court will issue a summons for the hearing and determine who is responsible for the accident.

Preparation and Document Processing

When applying for car insurance compensation, you need to prepare and submit relevant documents, including:

• Copy of the driver's ID card and driving license

• Copy of the vehicle registration document

• Contact information of the third party involved

• Photos or videos of the accident scene

• Contact information of any witnesses (if applicable)

• Copy of the police report and statement

• Copy of the breathalyzer test result (if applicable)

Collision Compensation Review

The insurance company will review the documents and police report to decide on the attribution of responsibility, which affects whether the compensation will be paid "in full" or only partially. They will also check if the policy is in effect, if any terms have been violated (e.g., driving without a license, drunk driving, mismatch of use, etc.), and the type of coverage (third-party or comprehensive). Secondly, the reasonableness of the compensation amount will be assessed based on the surveyor's report, comparing the repair quotes and medical receipts to determine if the amount is reasonable. Finally, the insurance company will integrate the above factors, approve the final compensation amount, and issue the compensation payment after deducting the excess/deductible.

Which Insurances May Be Claimed in a Traffic Accident?

Car Insurance

Hong Kong law requires all vehicles driven on the road to have car insurance to protect all road users, which is divided into "Third-Party" and "Comprehensive" insurance. Third-Party Liability Insurance compensates for third-party property damage and personal injury in the accident but does not cover the policyholder's own vehicle. Comprehensive insurance, in addition to protecting third parties, also provides full protection for the policyholder's vehicle.

Accident Insurance

In a general collision with another vehicle, if the other driver caused the accident, you can naturally claim your medical expenses from the other party and their car insurance company.

However, if you caused the accident, or you hit an object yourself and crashed, or the other party hit you and drove away, you will not be able to claim compensation from a third party's car insurance.

And the car insurance you purchased will not compensate for your personal injury or death, which is why personal accident insurance is vital at this time.

To claim accident insurance, the person involved must submit accident-related information to the insurance company, including the license plate number of the vehicles involved, the accident process, location, contact information of witnesses or injured persons, copies of the driver's Hong Kong ID card and driving license, passenger information, copies of vehicle registration documents, and relevant photos. If the police have been called, the driver also needs to provide a copy of the police statement, the police case number, the "Breathalyzer Test Report," and the "Notice of Intended Prosecution."

Voluntary Health Insurance Scheme (VHIS)

If you are unfortunately injured due to a traffic accident, VHIS can also help you, which is divided into Standard Plan and Flexi Plan.

Collision Compensation Amount

What to do if you hit government property (self-crash)?

If any government property or vehicle is involved, private settlement is not allowed. According to the police traffic accident handling guidelines, when a traffic accident involves government vehicles and property, you must immediately report to the police, in any case no later than 24 hours after the accident.

Government Property Compensation List

Traffic Accident Medical Expenses Compensation

Traffic accident medical expenses compensation is mainly through three channels, including the government's "Traffic Accident Victims Assistance Scheme" (commonly known as the "Driver's Award"), civil/insurance claims from the other party or your own insurance company, and personally purchased medical or accident insurance.

Car Scratch Compensation

Car scratches are considered "minor property damage." You can choose private settlement for compensation, or you can claim repair costs through your "Comprehensive Insurance" or the other party's third-party insurance. For costs, local spray painting of the car body is usually charged by the "panel" or "palm," with each panel costing about HK$1,800 - HK$5,000, and each palm about HK$1,500 - HK$3,000, depending on the car model, color, and the depth of the scratch. However, if the scratched area is larger, it may cost several thousand to over ten thousand HKD per panel, and for luxury cars or a full car respray, it can be tens of thousands of HKD or more.

Traffic Accident Settlement Agreement Template

It is recommended that drivers prepare a few copies of the traffic accident settlement agreement in the car for emergency use. This is because the best time for settlement is at the scene of the collision. If you wait a few days later to propose a settlement, the situation may be different.

DOC Version Download/PDF Version Download

Frequently Asked Questions about Car Collision/Traffic Accident

Do minor traffic accidents need to be reported to the police?

Although according to the current Hong Kong law, drivers are not obliged to report to the police if the collision does not involve injury or death, reporting to the police at least provides a case file number, which relatively protects both drivers.

When to report a traffic accident to the insurance company?

Generally, you should report to the insurance company within 24 - 48 hours after the traffic accident.

Can a traffic accident with injuries be settled privately?

If someone reports an injury, animal injury or death, or involves serious property damage in a traffic accident, the driver must call the police for help when safe.

What can I claim compensation for from the other party in a car accident?

If the other party is ruled responsible in the car accident, you can claim personal injury compensation from them, including medical expenses, loss of income, emotional and life losses, etc. Secondly, there is property loss, mainly the repair costs for vehicle damage. In addition, expenses such as follow-up consultation transportation fees, special nutritional supplements, and nursing fees, as long as they are reasonable and have receipts, can also be included in "special compensation" and claimed together.

How soon after a traffic accident should I see a doctor?

Generally, if you feel any discomfort after a traffic accident, it is recommended to see a doctor on the same day or within the next one to two days. The longer the delay, the higher the health and future claim risks.

If I settle a traffic accident privately, do I need to notify the insurance company?

Since car insurance policies stipulate that the car owner must notify the insurance company within a specified time after an accident, and must not admit responsibility or reach a compensation agreement with a third party without the insurance company's consent, otherwise the insurance company may later refuse to compensate, you should notify the insurance company for record purposes as soon as possible after the accident (usually within 24 - 48 hours).

Will apologizing to the other driver after an accident affect the claim?

Apologizing to the other driver at the scene of the accident with "I'm sorry / sorry" may be viewed as an admission of responsibility by the other party, the police, or the insurance company, which may be detrimental to the subsequent claim for compensation.

What should I do if I have a car collision on the highway/tunnel?

If you have a car collision on the highway or in a tunnel, the most important thing is to ensure personal safety. Do not stay in the lane. At the same time, you should turn on the hazard lights and place a warning triangle approximately 100 meters behind the vehicle. Everyone in the car should leave the vehicle when safe, move to a safe location, and call the police.

If there is a multi-vehicle pile-up, how is responsibility determined?

A multi-vehicle pile-up can be divided into rear-end collisions or push collisions, and the responsibilities are different. For details, you can refer to 【Car Accident Compensation】Who is responsible for compensation in a multi-vehicle pile-up? Who is responsible for rear-end/push collisions? Traffic accident response and car insurance claim tips!

Will a car insurance claim affect next year's No Claims Discount?

A car insurance claim usually affects next year's No Claims Discount (NCD / NCB), but it will not reset completely to zero. It will be deducted by a portion according to the insurance company's "reduction mechanism," depending on the claim amount, attribution of responsibility, and policy terms. Some comprehensive policies include NCD/NCB protection, which means that if the claim amount does not exceed a specified amount, it will not affect next year's NCD/NCB.

*** Disclaimer: The information contained in this article does not constitute advice for handling traffic accidents under any circumstances. The information contained in this article is intended to explain the traffic accidents and claims that often occur in Hong Kong, and does not involve any views, responsibilities and handling methods of Kwiksure or Pacific Prime Insurance Brokers.