Letter to an Insurer about motor accident debt: Request to waive debt

Important: This letter can be used as a guide. You must insert your own details where appropriate and delete any information that is not relevant to your situation. Always date your letters. Always keep a copy of the letter you send. Get legal advice if you do not understand.

Warning: This letter is information only and should not be relied upon as legal advice.

[Insert date here]

Insurance company

Address

Dear Sir/Madam,

Re: Accident on __ / __ / __

I refer to your letter dated __ / __ / __.

I refer to the Financial hardship (Third Parties Recoveries) provisions of the General Insurance Code of Practice.

I am in serious financial hardship and wish to be released from all liability for this cause of action. In support of my application I provide the following information;

My sole source of income is Centrelink benefits.

I cannot afford to pay the amount claimed because I have the following ongoing expenses: [give brief details].

I would also like you to consider the following:

[details of any illnesses or anything else affecting your ability to repay] (if applicable).

Victoria only: I am aware that I am protected by Section 12 of the Judgment Debt Recovery Act (VIC).

South Australia only: I am aware that section 5 of the Enforcement of Judgments Act 1991 prevents any order which would impose unreasonable obligations on a judgment debtor.

I assume you will not take any further action while I am waiting for your response to my request. If this is not correct please advise me in writing immediately.

I look forward to your response in writing.

Yours faithfully,

____________________
[Full name]

[Insert your contact details]