There was some discussion in another thread about what happens if a legal resident doesn't have a Drivers License, or if someone has overstayed their tourist card and therefore is driving without a legal drivers license in country and has an accident.
There were numerous anecdotes and suppositions.
I had a conversation Friday with a top executive with one of the largest, most respected, old-line insurance brokers in the country that I do business with, and I asked that question for the intent of informing others.
His response was that all auto insurance policies issued in the Dominican Republic require that the operator of an insured vehicle be legally licensed to drive in the Dominican Republic. Failure to be legally licensed while operating an insured vehicle is a violation of the terms of the insurance contract, and therefore is legal grounds to deny any claim arising from that illegal operation.
He said such breach of contract terms creates options for the insurance company, and gives insurance companies legal grounds to do what they want at their discretion, including denial of any claim.
Yes, the insurance is on the vehicle. But the contract is between the insurance company and the individual with legal requirements on both regarding execution of the contract by both parties.
Now here is where it got interesting. He said there is a problem in the country with agents selling fraudulent "policies" and IF such an accident happens will pay the claim out of their own pocket to avoid the exposure of the fraud, a form of self-insurance, but in the name of a company. They can be difficult to weed out.
Just FYI-
There were numerous anecdotes and suppositions.
I had a conversation Friday with a top executive with one of the largest, most respected, old-line insurance brokers in the country that I do business with, and I asked that question for the intent of informing others.
His response was that all auto insurance policies issued in the Dominican Republic require that the operator of an insured vehicle be legally licensed to drive in the Dominican Republic. Failure to be legally licensed while operating an insured vehicle is a violation of the terms of the insurance contract, and therefore is legal grounds to deny any claim arising from that illegal operation.
He said such breach of contract terms creates options for the insurance company, and gives insurance companies legal grounds to do what they want at their discretion, including denial of any claim.
Yes, the insurance is on the vehicle. But the contract is between the insurance company and the individual with legal requirements on both regarding execution of the contract by both parties.
Now here is where it got interesting. He said there is a problem in the country with agents selling fraudulent "policies" and IF such an accident happens will pay the claim out of their own pocket to avoid the exposure of the fraud, a form of self-insurance, but in the name of a company. They can be difficult to weed out.
Just FYI-