Janet (not her real name) was negligent in knocking down a pedestrian. She reported the accident to her insurance company X promptly, as required by the policy, and X had to handle the injury claim from the pedestrian.
Half a year later, the Police issued an offer to Janet to pay a composition fine of $200 for her careless driving. She accepted and paid the fine.
She was not aware that she would have breached the a condition in the policy which required "Every letter claim writ summons and process shall be notified or forwarded to the Company immediately on receipt."
X paid a sum of $30,000 as injury claim to the pedestrian and took legal action to recover this payment from Janet, as she had breached the policy condition and was not entitled to be covered by the policy. Janet had to engage a lawyer to fight against the recovery of this sum by X.
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