I Owe Insurance Company £334,000 due to Voided Insurance

Cisco001

I am getting confused.

if your insurance already void, how could they pay £334k to the cyclist on your behalf without asking you in the first place?

parking_question_chap

Cisco001 wrote: »

I am getting confused.

if your insurance already void, how could they pay £334k to the cyclist on your behalf without asking you in the first place?

See paragraph 3.

lincroft1710

Although you say you have no assets, is there any chance you may be in line for an substantial inheritance which would substantially or wholly pay off the debt?

Bankruptcy may well be the way to go. But given your age, even if you didn't go bankrupt, this debt would never be paid by ordinary means.

Marvel1

Supersonos wrote: »

Recently I was applying for insurance and said I'd had no accidents - the person on the other end then told me I'd been rear-ended a few years previously, something I'd forgotten.

I couldn't help then wonder why they're asking the question when they know the answer, other than to catch me out.

I have my written on a calender - annually the date etc so I remember at renewal time for quotes and when it expires to disclose.

foomanchu

9 points and taking out cyclists, never mind the debt I'm not sure you should be on the roads. I can only imagine the stress you've put the cyclists family through.

AdrianC

Cisco001 wrote: »

if your insurance already void, how could they pay £334k to the cyclist on your behalf without asking you in the first place?

Because they were the MIB insurer of record at the time of the collision.

They cannot legally get out of paying. BUT they can pass the bill on because the policy was voided.

Supersonos wrote: »

If they paid out £334k, I'm guessing the OP was negligent in some way? This couldn't have just been an accident. The OP was drunk maybe?

Don't get the amount and liability confused.

Determination of liability is the same if it's a grand of wing and bumper scrape as if it's a cyclist injured badly enough to be off work for months.

unholyangel

OP, a few recommendations to make.

1) Head over to the bankruptcy board (bankruptcy & living with it I think its called). It will give you some initial advice and insight to hopefully give you the peace of mind that this is not life ending. You can and you will deal with this.

2) Check if there are any debt charities/advice centres near you. My local council run one. They will go over a basic financial assessment and present options (bankruptcy is only one and not suitable for all circumstances). If you can't find anything online, contact your local CAB and ask - they should be able to point you to one.

3) You haven't mentioned if you are dealing with the mental health issues or how. But make an appointment with your GP and either disclose all to them or update them on how you're feeling. If you're on medication then it might need changed. If you're not then you could benefit from that and/or other methods of treatment (CBT, support groups etc). You won't get any judgement from your GP or mental health professionals if your practice has them.

Arklight

They can ask you for £334,000, but only a court can decide if you are liable to pay. You should exhaust the ombudsman route first, assuming they don't sue you before that is completed.

Without implying you are liable for the costs any more than you have already, explain to them that you have no assets and a modest income (if that's the case). Ask them what they would actually be expecting in terms of a repayment schedule.

They may come back with something you can afford rather than risk going to court and getting less. Do get advice on that though. You don't want to be in a position where if you acquire assets in the future they can lay claim to them.

If it goes to court it might go better than you expect. Judges sometimes don't have much sympathy with large companies and award fairly low monthly re-payments. Bankruptcy could be an option after that. Doesn't sound like it would make much material difference to you at this point.

This thread should be moved or reposted to one of the finance boards as it doesn't have much to do with motoring, and many of the replies have little to do with the question that has been asked.

Clive_Woody

There are a number of debt charities who will be able to advise on options such as bankruptcy.

Loop up Stepchange, who are one of the free charities who will be able to talk through your options with you.

As mentioned, there is a bankruptcy board here on MSE too, have a look on there and do ask for advice as the guys on there have seen it all before and will be able to offer advice too.

Davy_Jones_II

Supersonos wrote: »

Recently I was applying for insurance and said I'd had no accidents - the person on the other end then told me I'd been rear-ended a few years previously, something I'd forgotten.

I couldn't help then wonder why they're asking the question when they know the answer, other than to catch me out.

If people like you didn’t “forget” important events like this then insurers would not be so keen to check all details twice in the case of a claim.

Have you ever “forgotten” your no claims discount, or is your amnesia restricted to things that would increase your premium?