2 cars collide in a minor collision. The drivers are both insured with the same insurance company and both have comprehensive insurance.
The insurance company comes up with a determination that both parties are partly at fault and charge BOTH parties the full insurance excess. Is this legal ? (I postulate that the insurance company is acting in bad faith, because they are trying to reduce the payout). Does it matter if the parties are equally at fault or 1 party is 75% at fault and the other 25%
(Please assume for the sake of this question that there is nothing in the insurance policies which specifically talks about partial fault).
The jurisdiction here is New Zealand, but I would be interested in how this scenario is handled in other jurisdictions as well.