Consent and indemnity agreement

huckster

it is blank cheque agreement. 

Don't think I would ever advise anyone to sign such a document.

The Insurance company under Road Traffic Acts are responsible for dealing with the third parties claim.

They want the agreement signed by your Sister, mostly so it makes it easier for them to recover any money from her.  

You could post this to another forums legal page.  I have never seen anyone with any legal knowledge suggest signing such forms. And the reason is that consequences of signing appear to be worse than not signing it.

hiphop99

Thanks for your reply. 

I have also been getting advice on another legal forum. 

I agree with your post - however I did want to ask, what would be the consequences of not signing?

huckster

Not being legally represented in any Court claim against her.  

The third party could issue a Court claim against your Sister and the Insurance company would not offer any  assistance with this. But as the Insurance company under Road Traffic law are still liable to third parties as the Insurers of the vehicle, it would be difficult for them not to be involved with the amounts any third party is seeking recovery for.

Smithcom

hiphop99 said:

Thanks for your reply. 

I have also been getting advice on another legal forum. 

I agree with your post - however I did want to ask, what would be the consequences of not signing?

I would strongly recommend that your sister takes advice before signing/not signing.

In my opinion, there are too many moving parts to this problem (including the insurer not indemnifying the OP) for posters on this forum make a solid recommendation/suggestion.

If you believe that your sister is actually innocent of drink driving (although technically guilty), this policy repudiation may well be something that can be challenged.   Possibly.  

Your sister's financial position will play a factor.   Does she have assets?   Are there consequences  (i.e to her career) if she goes bankrupt?  

Please take advice.   Maybe Citizens Advice?    Maybe a telephone helpline on her home insurance?   

Consequences of getting this wrong could be felt for many years to come.

SC

DullGreyGuy

You need to check the wording of her policy but presumably they have a very strict drink drive wording.

Signing it or not doesn't make the greatest difference... if she refuses to sign it then in theory the third party will sue her, if she cannot afford to pay their claim then her insurers are obliged to step in and pay the claim as the RTA insurer of the vehicle however both under legislation and almost certainly under the terms of her policy she will be obliged to repay her insurers for driving in breach of the conditions of the policy.

In theory by signing it they will defend her straight away and use their skills to reduce the value of the claim. There is a slight caveat to it though... insurers will settle claims to avoid court as when you deal with 1m+ claims a year on average that works out better however from the perspective of a single claim some counterparties will drop the claim when settlement is not forthcoming and they are concerned they may not get the outcome they want from court.