Help please - insurance claim issues!

samorgo

Hi there!

I am looking for advice regarding an insurance issue I currently have. I hope I have put this in the right section and will welcome any advice.

In a nutshell here's what's happened to date:
One night my neighbour's (company) car caught fire. It was parked next to our motorhome and the fire caused our vehicle damage.
I discovered the damage the next morning and informed my insurers. They advised me to contact my neighbour's insurer.
On making contact with his insurers their claims handler told me not to worry - they were aware that my vehicle had been damaged and assured me that everything would be sorted at no cost to myself.
The next day our vehicle was recovered to their insurer's approved garage and they began the process of repairing it (inspections, sourcing parts etc).
Their insurers offered us a courtesy vehicle whilst ours was at the garage.
So all was going well and we were relieved that it was being sorted with no cost to us as initially promised.
Then a month later the garage called and said they were returning our vehicle as it is unrepairable.
I called the claims handler who had been dealing with the case. He told me not to worry as although the vehicle was unrepairable and had been written off we would get a payout and have options about full value, part value and the vehicle etc.
I was told to call the total loss team who refused to speak to me and redirected me back to the initial claims handler.
Once again he reassured me and explained my options regarding the payout.
When I asked how much it had been valued at he suddenly denied liability and said they were unable to make a payout now as a report they had received a week earlier said that the source of the fire couldn't be established and therefore they couldn't recover their costs from the manufacturer. A passing comment (while I was crying about being an innocent party) was made that their driver was an innocent party too but he did not explain legal liability. He told me to contact my insurers as they would now have to cover all the costs so far and make the payout.

I am refusing to claim through my insurance as I'll obviously lose my excess and NCB and I feel that the other insurers made promises that they now won't keep. I believe that there has been a breach of contract and I believe that due to their negligence in handling the case that they should pay up. Does this sound reasonable or am I going to have to bite the bullet and claim through my insurance?

I have written a complaint to the claims handler and had a reply from his boss apologising that they haven't handled the case as they should but refusing to deal with the case any further - they did offer us £75 compensation though (I won't be accepting!)... I have since written to their complaints department and am waiting for a reply. Oh by the way I contacted my insurers to make sure that the vehicle is still insured as I now have it back and although I have comprehensive insurance they say it is only covered third party because the write off has been published on the MIAFTR database by the other company (even though they haven't given me a penny for it)!

As I said earlier any advice will be appreciated and thanks for your time x

rs65

I think you'll have to bite the bullet and claim from your own insurance. If a recovery can be made from anyone, they will attempt it.

samorgo wrote: »

I believe that there has been a breach of contract and I believe that due to their negligence in handling the case that they should pay up.

You had no contract with them. Yes, they handled it badly but that doesn't mean they should pay up. Some compensation from them maybe as a gesture.

samorgo

Thanks rs65.

Could it not be argued however that as they made (empty) promises, took our vehicle without explaining the potential outcome (ie possible lack of liability) and wrote off the vehicle without even informing us that they accepted a contract to deal with our claim? I know this is difficult because we are not their actual customer but I am more than frustrated by the way they have handled this case. Can an insurance company write off your vehicle and then refuse to pay out - surely it only gets written off in exchange for an agreed value?!

I am just a lay person and I am learning more and more about insurance but I would have expected the proffessional claims handler to explain these issues to us. I don't think a reasonable person would expect an insurer to assure them that everything would be sorted, write off their vehicle (without any recompense) and then wash their hands of them - or am I being too emotional?

I will speak to my insurers and a solicitor (on my next day off as I am currently at work) - but thanks for your advice.

dacouch

http://www.honestjohn.co.uk/forum/post/index.htm?t=100959

InsideInsurance

For any claim against a third party you must be able to prove their negligence "on the balance of probability".

At the moment you havent said anything to suggest what your neighbour did wrong? Presumably you aren't thinking they intentionally set fire to their own vehicle? Did they sit and watch it burn without calling the fire brigade?

Do you have anything in writing from the Zurich confirming they admit liability?

Quentin

To resolve this quickly and assuming that you have comprehensive insurance you need to claim off your own policy.

Your insurer will attempt to reclaim their costs if a third party is liable and if successful you will get your ncd reinstated and can pursue the third party for your excess and any other uninsured losses.

From what you say though it looks like you have little choice - either make a claim or stand the loss yourself.

vaio

I might be tempted to google the make and model of the car to see if they have a habit of catching fire

rs65

samorgo wrote: »

Thanks rs65.

Could it not be argued however that as they made (empty) promises, took our vehicle without explaining the potential outcome (ie possible lack of liability) and wrote off the vehicle without even informing us that they accepted a contract to deal with our claim? I know this is difficult because we are not their actual customer but I am more than frustrated by the way they have handled this case. Can an insurance company write off your vehicle and then refuse to pay out - surely it only gets written off in exchange for an agreed value?!

I am just a lay person and I am learning more and more about insurance but I would have expected the proffessional claims handler to explain these issues to us. I don't think a reasonable person would expect an insurer to assure them that everything would be sorted, write off their vehicle (without any recompense) and then wash their hands of them - or am I being too emotional?

I will speak to my insurers and a solicitor (on my next day off as I am currently at work) - but thanks for your advice.

I don't see any argument that a contract was formed. You are pursuing your neighbour for the damage - the insurers are supporting them (not you).

If there was negligence, then the way they started to deal with it would have been beneficial to you.

samorgo

Hi all,

I have followed everyone's advice and started a claim through my insurers however almost 11 weeks on from the event I am still no further forward so I am looking for more advice...

My neighbour's insurer wrote my vehicle off and it is listed on MIAFTR as a cat D loss (although obviously I did not receive any financial recompense from them). I went to my insurer and submitted a copy of the assessor's report that was made by my neighbour's insurer. My insurer said that report wasn't good enough (even though the vehicle has been written off) and arranged for it to be assessed again. It was assessed by a company nominated by my insurer almost 2 weeks ago - he said as it's already been written off as original (manufacturers) parts aren't available that this should be easily resolved however on Friday my insurers said that they are now looking to "patch it up" with non-manufacturer parts. What I am trying to find out is can I now refuse to have it repaired or do I have to allow them to repair it? This is a really complicated case because of my neighbour's insurer writing it off and then washing their hands of us however the fact remains it has been written off so can I (politely) "demand" the pre-accident value?

I look forward to any advice as I just want this sorting and to get on holiday now that we're having such nice weather

Thanks in anticipation x

Quentin

They are entitled to deal with the claim as they want to. So if they choose to repair you may have to go with it.

Try pushing them for a timescale, and see if your policy covers a replacement car whilst yours is in dock.

samorgo

Thanks for your advice Quentin. My insurers say I'm only entitled to a small car while my vehicle is in the garage - I don't know how I'm supposed to go on holiday in a small car considering how much stuff is in my motorhome!!

My insurer is still waiting for reports from the assessors/engineers so I hope that tomorrow will be the beginning of the end!!

Thanks once again.