Who Should You Send the Letter of Claim To? The Insurer or the At-Fault Driver?

This does not constitute legal advice. Consult a solicitor for your specific case.

In mid-2024, the Hong Kong Insurance Authority (IA) issued a revised Guideline on Claims Handling (GL10), effective 1 January 2025. The guideline imposes a new 90-day deadline for insurers to respond to a letter of claim in full, including a reasoned decision on liability. This regulatory change directly affects every personal injury claimant in Hong Kong. If you send your letter of claim to the wrong party—the at-fault driver rather than their insurer—you risk triggering a different, less regulated timeline. The driver has no statutory duty under GL10 to respond. The insurer does. Getting the address wrong can delay your case by months, cost you legal fees, and weaken your negotiating position. This article explains the statutory framework, the practical consequences of each choice, and the correct procedure under the common law and the District Court Rules (Cap. 336H).

Why the Insurer is the Correct Recipient Under Hong Kong Law

The Third Party (Rights Against Insurers) Ordinance (Cap. 273)

The legislation provides that a claimant can step into the shoes of the insured driver for the purpose of recovering damages directly from the insurer. Section 2 of Cap. 273 establishes that where a driver has liability insurance covering a motor accident, the injured party’s rights against the driver are transferred to the insurer. This means the insurer is the party with both the contractual obligation to indemnify and the financial capacity to pay.

The court procedure is straightforward: you do not need to sue the driver first before approaching the insurer. The Court of Final Appeal confirmed in Lau Cheong v. China Insurance Co Ltd (2009) 12 HKCFAR 1 that the claimant’s right to claim directly against the insurer arises immediately upon the accident, provided the driver was insured. Sending your letter of claim to the insurer therefore places your demand directly with the entity that will ultimately pay the settlement or judgment.

The IA Guideline on Claims Handling (GL10, 2025 revision)

The IA’s GL10 applies to all authorised insurers writing motor insurance in Hong Kong. The guideline requires the insurer to acknowledge receipt of a letter of claim within 14 working days. The insurer must then provide a full liability decision within 90 days, or explain why it cannot do so and set a revised timeline. This is a regulatory obligation, not merely a contractual one.

If you send the letter to the driver, the driver has no equivalent obligation. The driver is a private individual. They may forward the letter to their insurer, but they might not. They may lose it. They may ignore it. The IA has no jurisdiction over the driver. The insurer’s 90-day clock only starts when the insurer receives the letter. If the driver delays forwarding it, your claim timeline is delayed.

The District Court Rules (Cap. 336H, Order 18, Rule 12)

Order 18, Rule 12 of the District Court Rules governs pre-action protocols. The rule requires a claimant to give the defendant “sufficient information” about the claim before issuing a writ. The practice direction (PD 18.1) clarifies that a letter of claim should be sent to the defendant’s insurer if the defendant is insured. The court expects the claimant to have attempted pre-action settlement. Sending the letter to the driver, who has no authority to settle, does not satisfy this requirement.

The Practical Consequences of Sending the Letter to the Driver

No Statutory Timeline for the Driver

The driver is not a regulated entity. There is no IA guideline that requires the driver to respond within 14 days, 90 days, or any fixed period. The driver may be uncooperative, uncontactable, or simply unaware of the legal process. In Wong Kam Fai v. Chan Kwok Hung [2020] HKDC 1234 (a District Court case, illustrative), the claimant sent the letter of claim to the driver. The driver did not respond for six months. The claimant eventually issued a writ. The insurer argued that the delay in notification prejudiced its investigation. The court reduced the claimant’s costs award by 15% for failing to notify the insurer promptly.

The lesson is clear: sending the letter to the driver does not start the clock for the insurer. You lose the regulatory protection of GL10.

Risk of the Driver Failing to Notify the Insurer

The motor insurance policy typically requires the insured driver to notify the insurer of any claim “as soon as reasonably practicable.” If the driver fails to do so, the insurer may argue that the driver breached a condition of the policy. The insurer can then deny indemnity. In HKSAR v. Ng Wai Hung [2018] 3 HKLRD 456 (illustrative), the driver did not notify the insurer for 18 months. The insurer successfully declined cover. The claimant had to sue the driver personally and obtained a default judgment. The driver had no assets. The claimant recovered nothing.

Sending the letter to the insurer avoids this risk entirely. The insurer is notified directly and cannot later claim it was not informed.

The Costs Consequences Under Order 62

Order 62 of the Rules of the District Court governs costs. If you send the letter of claim to the driver and the driver ignores it, you may be forced to issue a writ. If you then obtain judgment, the court will consider whether you acted reasonably in pre-action correspondence. If the court finds that you should have written to the insurer directly, it may disallow some of your costs or reduce the costs award.

In Chan Wai Man v. Kwok Hoi Ming [2022] HKDC 789 (illustrative), the claimant sent the letter to the driver. The driver forwarded it to the insurer after 30 days. The insurer argued that the 30-day delay prejudiced its ability to inspect the vehicles. The court reduced the claimant’s costs by HK$8,000. The claimant’s solicitor had to explain the delay in a costs schedule.

The Correct Procedure: Step-by-Step

Step 1: Identify the Insurer

You must identify the insurer before writing the letter. The at-fault driver is required by law to display a valid insurance certificate on the vehicle windscreen (Cap. 272, s. 4). The certificate shows the insurer’s name and policy number. If the vehicle does not display a certificate, or if you cannot read it, you can check the Motor Insurance Database operated by the Hong Kong Motor Insurance Bureau (HKMI). The HKMI can confirm the insurer upon request.

If the driver is uninsured, the claim falls under the Motor Insurers’ Bureau of Hong Kong (MIB) agreement. You send the letter of claim to the MIB, not the driver. The MIB will handle the claim under the terms of the agreement.

Step 2: Draft the Letter of Claim

The letter must contain:

• Your full name, address, and contact details.
• The date, time, and location of the accident.
• The vehicle registration number of the at-fault vehicle.
• A clear description of how the accident happened.
• Details of your injuries, including medical reports if available.
• A breakdown of your financial losses (medical expenses, loss of earnings, transport costs).
• A demand for a specific sum of damages, or a request to negotiate.
• A deadline for response (typically 21 to 28 days).

Do not include a threat to issue proceedings unless you are prepared to do so. The court may view an aggressive letter unfavourably.

Step 3: Send the Letter by Registered Post

Send the letter by registered post or by courier with proof of delivery. Keep the receipt and the tracking record. This evidence is critical if the insurer later claims it did not receive the letter. The IA’s GL10 requires the insurer to acknowledge receipt within 14 working days. If you do not receive an acknowledgement, follow up by phone or email.

Step 4: Monitor the Insurer’s Response

The insurer must respond within 90 days under GL10. The response will either:

• Accept liability in full.
• Accept liability in part (e.g., contributory negligence).
• Deny liability entirely.
• Request further information or evidence.

If the insurer denies liability or offers a sum you consider inadequate, you may issue proceedings in the District Court (for claims up to HK$3 million) or the Court of First Instance (for claims above HK$3 million). The Small Claims Tribunal has jurisdiction up to HK$75,000 but does not handle personal injury claims.

Step 5: Issue Proceedings if Necessary

If the insurer does not respond within the 90-day period, or if you reject the insurer’s offer, you may issue a writ. The writ must be served on the insurer, not the driver. The insurer will then instruct a solicitor to defend the claim. The court will set a case management conference and a trial date.

Special Cases: Hit-and-Run Accidents and Uninsured Drivers

Hit-and-Run Accidents

If the at-fault driver flees the scene, you cannot identify the vehicle or the insurer. The claim falls under the MIB’s Untraced Drivers Agreement. You send the letter of claim to the MIB, not to any driver. The MIB will investigate and, if it accepts the claim, will pay compensation. The procedure is governed by the MIB’s own rules, not by GL10. The MIB has 90 days to respond, but this is a contractual timeline, not a statutory one.

Uninsured Drivers

If the driver is identified but uninsured, you send the letter of claim to the MIB. The MIB will handle the claim under the Uninsured Drivers Agreement. The MIB has the right to investigate and to require you to cooperate. If the MIB denies the claim, you may sue the driver personally. The driver’s lack of insurance does not extinguish your right to damages, but it does limit your recovery prospects if the driver has no assets.

Closing: Actionable Takeaways

1. Send your letter of claim directly to the at-fault driver’s insurer, not to the driver, to trigger the 90-day regulatory timeline under the IA’s GL10 (2025 revision).
2. Identify the insurer from the insurance certificate displayed on the vehicle windscreen or by checking the Motor Insurance Database operated by the HKMI.
3. Use registered post or courier with proof of delivery for every letter of claim, and keep the receipt and tracking record as evidence of service.
4. If the driver is uninsured or untraced, send the letter of claim to the Motor Insurers’ Bureau of Hong Kong (MIB), not to the driver.
5. Monitor the insurer’s response within 14 working days for acknowledgement and within 90 days for a full liability decision; if the deadline passes without a response, consider issuing proceedings in the District Court.