The Timeline for the Presentation of Indemnification Offer by Insurers in Case of Motor Vehicle Accidents under the CIMA Code: Lack of Legislative Concern for Victims of Material Loss

Abstract

If the Chartered Institute of Management Accountants (CIMA) Code imposes deadlines for the presentation of indemnification offer to victims of motor vehicle accident or their heirs, the reason is simple; to coerce insurers to perform their obligation of repairing the loss incurred within a short notice. On this note, where an insurer fails to act according to the Code’s prescriptions, he shall be imputed penalties for late offer which shall be calculated based on the principal amount. Nevertheless, the CIMA Legislator sees the imposition of deadline for the presentation of offer to victims of material loss less of a necessity. This has greatly affected the reparation of material loss in the sense that insurers use it as an excuse to drag the presentation of offer for a long period of time. This paper therefore sets out to make a comprehensive analysis on the presentation of offer in case of material loss orchestrated by motor vehicle accident. This paper reveals that the CIMA Code does not sufficiently regulate the aspect of material damage in case of motor vehicle accidents. On this note, it is suggested that the CIMA Code should be amended to accommodate and sufficiently regulate the reparation of material damage resulting from motor vehicle accidents.