Claim dispute

Philanthony

Hi, last year I was hit by a car and injured. Turns out it was a disqualified driver driving. He had bought the car a month before.

The car was still insured to the previous owner even thou they sold it. Not sure why it was insured, either previous owner didn't cancel insurance or there was an admin error with the company.

The issue I have now is the insurance company are saying they aren't liable as the owner had sold it and MIB are saying they aren't liable as the car was insured!.

Any info appreciated

AdrianC

If the insurer was still the MIB insurer of record, because the vendor hadn't cancelled the policy, then they certainly should be liable - and they can reclaim their losses off the policyholder.

This may be the time to be getting proper legal advice.

Grumpy_chap

This is why you should always cancel insurance promptly after selling, or otherwise relinquishing control of, a car.

Aretnap

AdrianC said:

If the insurer was still the MIB insurer of record, because the vendor hadn't cancelled the policy, then they certainly should be liable - and they can reclaim their losses off the policyholder.

Though this may not be true if the policy had a clause to say that it automatically ended if the vehicle was sold, and the clause was worded watertightly enough.

It's a complicated area of the law which I'm not sure has been thoroughly tested in court and while logically either the insurer or the MIB must be responsible, there may well be enough uncertainty over which of them actually is responsible for them to point their fingers at each other for a while. 

You should definitely have a solicitor involved if you don't have one already. If you do, what does he/she say? 

BOWFER

Grumpy_chap said:

This is why you should always cancel insurance promptly after selling, or otherwise relinquishing control of, a car.

This is interesting.
Example, I sold my car to a dealer 2 weeks ago.
I left it a good week or so to get a replacement car, so kept the insurance on the old car 'open' until I knew what new car I was getting and then just did a switch online from one car to another.
What would have happened if I'd contacted the insurance to tell them I didn't own the first car any more, but didn't have another car to transfer the policy to yet?
Can insurance policies just sit 'dormant' without a car allocated to them?

Philanthony

Yes solicitor involved, they are of the opinion of bringing all parties to court and let court decide who is liable.

AdrianC

Philanthony said:

Yes solicitor involved, they are of the opinion of bringing all parties to court and let court decide who is liable.

And who pays for the solicitors if you lose?

I presume we're talking about more than £10k for it not to be a small claim.

postmanpat68

AdrianC said:

Philanthony said:

Yes solicitor involved, they are of the opinion of bringing all parties to court and let court decide who is liable.

And who pays for the solicitors if you lose?

I presume we're talking about more than £10k for it not to be a small claim.

Never heard of No win No fee then!

Robbo66

No Win No fee only covers your Solicitor costs not the solicitor costs of the other parties if they win and costs are awarded 

Aretnap

Robbo66 said:

No Win No fee only covers your Solicitor costs not the solicitor costs of the other parties if they win and costs are awarded 

In most cases a no win no fee arrangement will include an insurance policy that will pay the other side's costs in the event that the claim is unsuccessful. Obviously the OP should clarify that this is in place.

To the OP: you are likely to get better advice from your own solicitor than you will on here but yes, if neither the insurer nor the MIB will put their hand up then taking one or both to court is going to be the only way to force the issue. 

DB1904

Aretnap said:

Robbo66 said:

No Win No fee only covers your Solicitor costs not the solicitor costs of the other parties if they win and costs are awarded 

In most cases a no win no fee arrangement will include an insurance policy that will pay the other side's costs in the event that the claim is unsuccessful. Obviously the OP should clarify that this is in place.

To the OP: you are likely to get better advice from your own solicitor than you will on here but yes, if neither the insurer nor the MIB will put their hand up then taking one or both to court is going to be the only way to force the issue. 

And if the MIB are liable then it will only be for the OP's injuries, they will have an at fault claim for the damage.