Car Accident Philippines

Should You Be Compensated for Business Losses in a Car Accident Involving Your Service Vehicle?

Question:

My sister's car, which is used as a service vehicle for her business, was hit by a truck. Though no one was injured, the car is damaged and cannot be used for the business, leading to income loss. The car is still under monthly amortization, and she also needs to pay her driver daily. Can she be compensated by the truck's owner for these losses?

Answer:

Applicable Laws:

1. Civil Code of the Philippines: Covers compensation for damages, including actual, moral, and exemplary damages.
2. The Traffic Code: Addresses traffic rules and the liabilities that come from accidents.
3. Insurance Contracts: If applicable, may provide avenues for compensation.

What Types of Damages Could Be Claimed?

• Actual Damages: Costs directly attributed to the accident, such as repairs.
• Consequential Damages: Includes loss of earnings, which seems relevant in your sister's case.

Should She Be Compensated for Business Losses?

Yes, she could potentially claim for consequential damages, which includes lost income from not being able to operate her business due to the car accident. However, she needs to prove these losses definitively for the courts to consider them.

What Steps Should Be Taken?

1. File a Police Report: Documenting the accident officially is the first step in any claim for damages.
2. Gather Evidence: Collect proof of damage and loss of income, such as repair estimates and financial records.
3. Consult a Lawyer: Speak to a legal expert to understand the intricacies and how best to present your case.
4. Negotiate or Sue: Try to settle the matter with the truck owner or their insurance. If that fails, you may need to file a case.

Can Insurance Help?

If both parties are insured, the insurance companies will often negotiate terms of compensation. However, business loss is generally not covered unless it's explicitly stated in the policy.

What About the Driver's Daily Income?

If the driver’s contract stipulates guaranteed daily earnings, your sister may indeed have a liability to pay him, which she can also potentially recover from the truck owner.

Conclusion:

Your sister has a strong case to claim not just for the damage to the vehicle, but also for the consequential damages arising from loss of income, both hers and possibly her driver's.

Disclaimer:

This article is for informational purposes only and should not be considered legal advice. Consult a qualified attorney for advice specific to your situation.