2. Should the driver arrange to repair the car immediately after a traffic accident? Is the driver required to obtain prior approval from the insurance company for the costs of any repair?
If the car is insured by the loss and damage cover, the driver should not arrange to repair the car by himself or herself without consulting the insurer first. If the car is damaged in a traffic accident, the driver should immediately contact his/her insurer so that the insurer can instruct its own surveyor or adjustor to assess the extent of the damage, the repairs need to be done, as well as the costs to be involved. Where towing fees are covered under a motor insurance policy, your insurer may sometimes instruct you to engage towing service provider(s) designated by it if such service is required.
Subject to the directions given by the insurer on repair based on the findings of its own surveyor, the car owner can either claim for the reasonable repair costs or have the repairs carried out at the agreed sum.
Upon paying your repair costs and any other relevant expenses / losses (e.g. towing fees, expenses incurred for renting substituted car), generally speaking your insurer is entitled under the terms of the motor policy to commence recovery action against the wrongdoer (if any) on your behalf by its subrogation rights (i.e. the right to subrogate your claim for property damage and loss against the wrongdoer upon providing indemnity to you under the policy). You may be required to provide reasonable assistance to the insurer for initiating and conducting the recovery claim. You are however entitled to include your uninsured loss (e.g. excess or any expenses not covered under the policy) in the recovery claim.