New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-11
Auto Insurance
Does Not Cover
Indirect Damage
Policies Should Be inspect
ed Carefully to Learn Just
How Far Liability Goes

Direct and indirect damage to a, car.
under the collision form Of insurance,
has in its meaning limitation of
liability, in SO far as the insurance
company is concerned If this
clause were more carefully digested,
it would eliminate some misunder-
standing
Very frequently, when q collision
occurs, indirect damage follows. As
an illustratlon--an automobile collid-
ing with another car breaks the oil
pump, thus preventing proper lubri-
cation. The driver attempts to con-
tinue on his way, and scores the cylin-'
ders and burns out bearing, thus
injuring his motor, to repair which en-
tails expense.
The insurance company, legally with
in the meaning Of the policy, would not
be liable for any damage that occurred
after the collision, for this would be
indirect damage. The only claim that
could be laid against the company
would be for such damage as resulted
directly from the collision.
Another case is that of a car collid-
ing with another, being so disabled
that the driver Is unable to move It.
In cold weather, for instance. if he
allows the machine to stand for num-
Der of hours, and this causes the crack
ing of the cylinders, the insurance
company would be liable only for
the damage at the time of the accident,
for the cylinder trouble would be in
direct damage.
The clause as above described reads
as follows:
OF the automobiles in the schedule
hereof described and the operatine
equipment thereof while thereto at
tached, caused solely by accidental col
ilsion with another object, either NOV
ing or stationary and occurring within
the policy term; excluding, however
(a) all loss or damage by fire from any
cause whatsoever, and (b) all loss or
damage to any tire or tires where the
automobile is not otherwise damaged
IN the same collision, and (c) all loss
or damage whatsoever where the
amount of such loss or damage does
not exceed the sum of --. and from
any claim under this collision clause in
excess of said last named sum, sold
sum shall be deducted and the com.
pany shall be liable only for the loss
or damage in excess thereof: provided,
this exclusion &c" is 500, then and in
such event exclusion "b" next above
shall not apply
The company's liability for such COL
lision loss or damage shall not exceed
the actual cash value of the property
destroyed at the time of it's destruc-
ton or the cost of it's suitable repair
or replacement. In either event the
amount thereof or the nature and ex-
tent of the damage requiring repair or
replacement is to be determined as
hereinafter provided. In the event Of
loss or damage whether covered here
under or not) to any of said auto
mobiles, or the equipment thereof, the
further liability of the company here
under for loss or damage thereto shall
be reduced by the amount of the loss
or damage sustained until repairs shall
have been completed or replacement
made, and thereupon coverage here
under shall apply as before, withou ad-
ditional premium
In the event of such loss or damage
the amount thereof or the nature and
extent of the damage requiring repair
or replacement shall be determined be-
tween the parties hereto if possible;
otherwise by two appraisers, one to be
chosen by the assured and one by the
company: The two appraisers so
chosen, if they are not able to agree,
may select third, and the award in
writing of any two of the appraisers
shall determine the amount of such
loss or the nature and extent of the
damage recurring repair or renIace-
ment. The company and the assured
shall pay the appraiser respectively
selected by them and shall bear equally
the other expenses of the appraisal and
of the third appraiser, if one is Sc
lected. The company may accomplish
such repair OR replacement SO deter
mined by such means as it may elect,
or, at the option Of the company, pay
in money the amount of the loss as
fixed by the appraisers.
The company shall have reasonable
| time and opportunity to examine any
damaged automobile or its equipment
covered hereunder before repairs are
undertaken or physical evidence of the
damage removed, but the assured shall
not be prejudiced hereunder by any
act on the assured's part or in the as
sured's behalf undertaken for the pro
lection or salvage of the damaged
automobile or it's equipment.
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