how legal is "full and final settlement"

libsmum

I had a very minor accident in January.

No damage to my car. We agreed that our insurance companies would go like for like so chose to settle privately.

I paid him money and he signed a notice saying I accept this as "full and final settlement blah blah" ...

He then, 4 months later, contacted my insurance company making a claim (I think for personal injury - of which there wasn't any!!)
However the details he has given are sketchy to say the least - 3 different dates, the wrong location. All they have is my description, my car details and address. (we have since moved)

any advice ? thanks

NBLondon

Hopefully you told your insurance company at the time "for information only" otherwise they may decide to be awkward...

If so, you should be able to send them a copy of your signed document so their legal department can tell you how valid it is.

libsmum

err... no I didn't (don't start bashing - I now know I should have but didn't at the time...i'm 45 and never had an accident before !)*blush*


I have since renewed my insurance with another company. This is the only reason I found out. !! I got a few letters from injury claim type people but wrote back to one and ignored the rest as the details were all wrong.

Quentin

You don't say what was in the letter (unless you really wrote blah blah).

As advised get some legal advice over this.

paddedjohn

Wait until you get a letter from your existing insurance company telling you they are cancelling your policy, your cheap solution to sort out your earlier accident is going to cost you dear for years to come.

libsmum

i put my details and his, the date of the accident and that he accepted the money £150 as full and final settlement (oh and the date of settlement)

Thats all

fivetide

do remember it will be your insurer at the time you need to speak to, not the new one. However, if you haven't already spoken about it with the new one you might want to have that chat as they could want more money to keep your cover in place as you are seen as beign a higher risk.

You certianly don't want them cancelling it for not disclosing.

Beyond that, have you got legal cover with your house insurance etc? You could start there for some proper contract advice.

5t.

libsmum

paddedjohn wrote: »

Wait until you get a letter from your existing insurance company telling you they are cancelling your policy, your cheap solution to sort out your earlier accident is going to cost you dear for years to come.

I have had a letter from my then insurers. Also, my new ones - they are only increasing my policy by £46, £26 of which I get back if they prove the claim to be false.

How exactly was it a cheap solution ?

I have protected ncd

Quentin

libsmum wrote: »

......How exactly was it a cheap solution ?

I have protected ncd

Your original insurer will deal with the claim from the third party.

If it is successful you will (at the least) lose a NCD "life".

The worst case scenario, though , as you have deliberately breached the policy conditions, if they can they could come after you to reimburse them!

libsmum

what i wanted to know was how/if can he claim after signing for full and final settlement, thanks

Quentin

libsmum wrote: »

what i wanted to know was how/if can he claim after signing for full and final settlement, thanks

This latest claim is for injury - that letter won't cover a PI claim (the injured party has 3 years to start a claim)

All that letter seems to confirm is that you agreed you were liable!