Thank you for your question. I will try to assist you in answering it today but please feel free to ask as many follow up questions as you like until you are 100% satisfied.
Insurance policies are seen as month to month contracts and if they do not get their premiums they are entitled to reject your claim.
As far as BMW is concerned, the National Credit Act does make provision for your brother to surrender the vehicle to them and they have to sell it in auction for a market related price. If they get less than what is owed by your brother then they can sue him for the difference still outstanding.
The fact that the car is at the panel beaters who will not release it without getting payment for their storage fees does make things difficult however as BMW cannot be expected to pay those costs and if your brother wants to surrender the car, he has to give it to them without any strings attached.
The longer the car remains with the panel beater the more prejudicial it will be to his case as the panel beater's costs will increase so much that it will "eat up" any value left in the vehicle. He will have to move the car to another storage place as soon as possible and before he will be able to do that, he will have to pay the storage fees. He can however try negotiating for a reduction with the panel beater. They are open to this more often than not.
I hope this answered your question.
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