Non-Fault party paying out for PI claim then claiming back?

Head-Out-Of-Sand

Hello Moneysavers,

Grateful for any ideas on this one - Google has failed to elucidate me!

My partner had a car accident a year ago - he was driving along main road and another driver suddenly pulled out from where she was parked on the opposite side (on double yellows, facing the flow of traffic), did a u-turn into the road and smashed into the side of him.

She admitted liability at the scene (I know, I know, a verbal confession's not worth the paper it's written on etc...) and was trying to persuade him not to do it through the insurance, but he resisted and took her details. The following morning he discovers that she has put in a claim against him (her insurance was TPO), stating that he was at fault (stated he had veered across road and hit her while stationary). Oh, and she and her two passengers (who would have been well aware that her version of events was a big fat lie) all threw in whiplash claims against him for good measure. Lovely stuff.

Cue months of pain, stress and worry from him, but the evidence from the damage to the vehicles (and the fact that she had changed her story more than once) led to her side admitting liability. Job's a good'un so he thinks, all paid up and settled by April this year. Justice served. However...

This weekend, a court claim from one of said passengers lands on his doormat, naming him as the defendant, referring to monies already paid out by him for her PI claim, and asking for more!! First we'd heard of it!

He contacted his insurer this morning and they state 'oh nothing to worry about, we pay out on PI claims straight away then reclaim it if we need to - just send us the forms and we'll deal with it". Eh?! :huh:

Why on earth would an insurance company do this, either when liability is still in dispute, or more incredibly after liability has been admitted by the other side? I don't know if this is common practice as they've suggested but it seems like an utterly ludicrous way to run a business to me!!

Also, this is in the county court - if the judge finds in her favour, is this a CCJ against his name? All very well for the insurance co to be supremely relaxed about it - it's not their name on the court papers!!

This all just seems completely unjust - this woman (who has been complicit in her mate's lies to the insurance co) should be claiming off her idiot (and liar) of a mate, not off him.

Anyone come across this before?

InsideInsurance

Never heard of the practice of settling before liability is resolved.

Dont get hung up on the CCJ aspect, they are not the bogeyman that urban myth has made them out to be. It is only CCJs that arent paid on time that go onto your credit history. The courts are there for a good reason and people win and lose cases all the time without it ending their lives.

CCJs from debt are slightly different because generally if you havent been able to afford the monthly repayments for a debt you are almost certainly not going to be able to afford to pay off the whole debt within weeks of the judgement being made. (though if you did then again they wouldnt impact your credit history)

Head-Out-Of-Sand

Thank you - that puts my mind at rest about the CCJ element.

We're a bit nervous about leaving the insurance company to deal with it - they weren't great dealing with the claim full stop to be honest - they were initially considering settling 50/50 despite the fact that her story was so obviously not true (based on the type of damage done, and the fact that she couldn't stick to a story - my partner just said fine keep going I'll see her in court, as she'd have crumbled under any kind of cross examination). It's only when he instructed a solicitor that it was properly challenged.

We both suspect that his insurance co have actually made a mistake in paying up and this 'oh yeh, we pay out without any finding on liability all the time' bluff is nonsense. Personally I'd like to go to court with all the evidence and embarrass her in front of the judge, but I suppose that may not be the best option.

I just don't know where people have the gall to do this stuff - I had an accident a few months ago and was (1) genuinely not at fault and (2) genuinely quite badly hurt, and I found the process of medical exams, claims etc unnerving, even though I told 100% truth! To knowingly claim against the injured party that your mate crashed into by being careless - it just amazes me that these people can do it. Too naive I guess!

Quentin

Although the insurer will deal with the claim, your partner should follow up on this story with them.

The agent who said "we pay up, then reclaim if necessary" sounds as though they were making it up.

The insurer may have agreed the claim and actually paid up and he already has a fault claim against him!

Head-Out-Of-Sand

Thanks - yes that's what I was wondering, has this gone on his file as him being at fault and not at fault for the same claim? Sounds like someone's covering their behind to me.

I wonder if, while letting Direct Line deal with it, he should write a letter to the Judge setting all this out, and enclosing confirmation that the other party admitted liability, just in case the insurance co continue to be incompetent?

I'm normally pretty good with figuring out this kind of stuff, but this one's really got me stumped - from a google search it really doesn't seem to be a common thing at all (as you would expect, because it makes no sense).

rs65

I wonder if they mean that a passenger was paid - on the basis that one of the insurers was ultimately going to pay.

I would be asking for a full explanation from the insurers as to what has happened to date.

BertTheRaccoon

I wonder if her insurers formally admitted liability for your partner's claim or whether they agreed to deal with his claim on a without prejudice basis.

That would still leave her crew to pursue your other half's insurer.

I wonder if they have actually paid out to the third party in a moment of stupidity, or worse still admitted liability and that has caused a precedent for the passenger's solicitors to look to your other half for the passenger claim

As a PI lawyer, when I'm acting for a passenger, I don't give a hoot who is at fault, a passenger is an innocent party as far as liability is concerned. Therefore, if there is any tit for tat between the drivers involved, I tend to approach the insurers of the car my client was a passenger in and ask them to deal with the claim on a without prejudice basis.

If I was your other half, I would ask his insurers to absolutely clarify they have at no stage admitted liability or dealt with the third party's claim.

Send the court papers to them by recorded delivery and phone them daily until they confirm they have passed the papers onto solicitors to enter a defence.

Quentin

Head-Out-Of-Sand wrote: »

I wonder if, while letting Direct Line deal with it, he should write a letter to the Judge setting all this out, and enclosing confirmation that the other party admitted liability, just in case the insurance co continue to be incompetent?.....

Definitely not!

Head-Out-Of-Sand

Quentin wrote: »

Definitely not!

Fair enough

I really dislike not being able to have the last word (Just ask partner...!), especially when someone has been dishonest.

Head-Out-Of-Sand

BertTheRaccoon wrote: »

I wonder if her insurers formally admitted liability for your partner's claim or whether they agreed to deal with his claim on a without prejudice basis.

The letters from his solicitor state that the 'defendant's insurer has admitted liability', so presumably that means full liability and not without prejudice.

I will suggest he takes the advice above and writes formally to the insurance company requesting clarification, and insists on them filing a defence.

Thanks for the advice peeps - much appreciated

Quentin

Head-Out-Of-Sand wrote: »

Fair enough

I really dislike not being able to have the last word (Just ask partner...!), especially when someone has been dishonest.

He can still (separately to the court issue which should be left with the insurers to handle) file a complaint over the insurers handling of all this if necessary via their complaints procedure and escalate to the FOS if unhappy with their response.