I Owe Insurance Company £334,000 due to Voided Insurance
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Following on from a collision with a cyclist on a roundabout I was informed 6 months later by my motor insurance company that they had voided my insurance and they gave me a full refund. It transpired via a DVLA check on their part I had neglected to inform them of 9 points on my licence and their underwriters could not insure me.
This was an oversight on my part, when I renewed the insurance online the insurance amount had increased so I presumed I had notified them during the year. I must add I was being treated for PTSD and depression at the time of renewal, and I was not in a great place.
The insurance company were still liable for any monies paid out to the cyclist (via the Road Traffic Act apparently), so they wrote to me again 9 months after the accident to ask me to sign a Waiver Form, which meant I would be liable for any monies paid out. As I had met with the cyclist on numerous occasions to check he was okay (as I felt very bad about the accident, and was receiving my own counselling) I stupidly presumed the accident costs would be around £5,000, new bike, some medical costs etc). I therefore sought no legal advice and duly signed the Waiver form.
Over a year later and 18 months after the accident I received a letter from the insurance company's solicitors asking me to pay them back within 28 days. The total they were asking for was £334,000. It turns out the insurance company had paid out to the cyclist £300,000 and £34,000 was for his own solicitors fees.
To say this came out of the blue is an understatement. It has eventually led to the breakdown of my marriage, and eventually divorce and I no longer live in the family home and I rarely see my 3 young children. Due to depression and mental illness the stress has been enormous to us all.
I have been in contact with the insurance company's solicitors over the past 3 years. I have sent them various medical records of my condition then and now. I have completed various financial forms informing them that I have no assets and very little surplus money at the end of every month. A debt of £334,000 can never be repaid (I'm 50 next year) and since this all happened thoughts of suicide are never far from my mind.
I must add the police said at the time the accident was "just one of those things" and unfortunate. I was not speeding, I slowly pulled out on to the round about in low sun on a February morning and did not see the cyclist to my right. He was injured and taken to hospital but he was back at work a few months later. I stayed in touch with him as I did feel terrible for the accident and wanted to ensure he was okay.
My question is, is there any legal recourse I can take? If the debt is so large can it ever be written off. Due to my mental state (which I have doctors notes and counselling notes for) can this do anything to lesson the amount owed?
Is bankruptcy my only option (which isn't cheap either)?
This was an oversight on my part, when I renewed the insurance online the insurance amount had increased so I presumed I had notified them during the year. I must add I was being treated for PTSD and depression at the time of renewal, and I was not in a great place.
The insurance company were still liable for any monies paid out to the cyclist (via the Road Traffic Act apparently), so they wrote to me again 9 months after the accident to ask me to sign a Waiver Form, which meant I would be liable for any monies paid out. As I had met with the cyclist on numerous occasions to check he was okay (as I felt very bad about the accident, and was receiving my own counselling) I stupidly presumed the accident costs would be around £5,000, new bike, some medical costs etc). I therefore sought no legal advice and duly signed the Waiver form.
Over a year later and 18 months after the accident I received a letter from the insurance company's solicitors asking me to pay them back within 28 days. The total they were asking for was £334,000. It turns out the insurance company had paid out to the cyclist £300,000 and £34,000 was for his own solicitors fees.
To say this came out of the blue is an understatement. It has eventually led to the breakdown of my marriage, and eventually divorce and I no longer live in the family home and I rarely see my 3 young children. Due to depression and mental illness the stress has been enormous to us all.
I have been in contact with the insurance company's solicitors over the past 3 years. I have sent them various medical records of my condition then and now. I have completed various financial forms informing them that I have no assets and very little surplus money at the end of every month. A debt of £334,000 can never be repaid (I'm 50 next year) and since this all happened thoughts of suicide are never far from my mind.
I must add the police said at the time the accident was "just one of those things" and unfortunate. I was not speeding, I slowly pulled out on to the round about in low sun on a February morning and did not see the cyclist to my right. He was injured and taken to hospital but he was back at work a few months later. I stayed in touch with him as I did feel terrible for the accident and wanted to ensure he was okay.
My question is, is there any legal recourse I can take? If the debt is so large can it ever be written off. Due to my mental state (which I have doctors notes and counselling notes for) can this do anything to lesson the amount owed?
Is bankruptcy my only option (which isn't cheap either)?
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Comments
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I'm afraid the error in not disclosing the 9 points has allowed them to void the policy.
You always have the option of a complaint to the financial ombudsman if you feel their decision is unfair or incorrect
I would advise as a separate issue to talk to someone like the Samaritans about your suicidal thoughts who can provide support and adviceEx forum ambassador
Long term forum member0 -
"I have no assets and very little surplus money at the end of every month"
Sounds like you haven't much left to lose then; bankrupt may be the way to go but you'd be better off asking citizen's advice or a specialist solicitor than randoms on a forum.0 -
EdGasketTheSecond wrote: »"I have no assets and very little surplus money at the end of every month"
Sounds like you haven't much left to lose then; bankrupt may be the way to go but you'd be better off asking citizen's advice or a specialist solicitor than randoms on a forum.
Yup bankcruptcy would be the way to go.
Not the big thing it used to be, but i'd seek professional advice sooner rather than later.
At the end of the day - its only money - they cant take feathers off a frog as the old saying goes. If you dont have it, they cant get it.
Not at all trying to be dismissive of the issue and the worry, but do keep it in perspective0 -
[QUOTE=Links;76465470I_had_neglected_to_inform_them_of_9_points_on_my_licence_[/QUOTE]
In this day and age, why is it still up to the driver to remember the details of any claims, points, accidents etc. from the last 3-5yrs? Surely this stuff is all on a central computer?0 -
Yes, it's all the system's fault. Big Brother is simply not up to the job.;)Supersonos wrote: »In this day and age, why is it still up to the driver to remember the details of any claims, points, accidents etc. from the last 3-5yrs? Surely this stuff is all on a central computer?
But hang on, the points are indeed on a central computer - that's how the OP got caught out.
Anyway, with 9 points you are just one offence away from a six-month ban. Easy thing to forget.0 -
Yep, that's how it works.Following on from a collision with a cyclist on a roundabout I was informed 6 months later by my motor insurance company that they had voided my insurance and they gave me a full refund. It transpired via a DVLA check on their part I had neglected to inform them of 9 points on my licence and their underwriters could not insure me.
If you declare something inaccurately, they can take any additional premium from a payout.
If they can show they wouldn't have insured you if things had been declared accurately, then the policy can be voided.
Correct.The insurance company were still liable for any monies paid out to the cyclist (via the Road Traffic Act apparently)
Correct.so they wrote to me again 9 months after the accident to ask me to sign a Waiver Form, which meant I would be liable for any monies paid out.
So the £300k payout is following legal action. Did it get as far as court?Over a year later and 18 months after the accident I received a letter from the insurance company's solicitors asking me to pay them back within 28 days. The total they were asking for was £334,000. It turns out the insurance company had paid out to the cyclist £300,000 and £34,000 was for his own solicitors fees.
Which, unfortunately, does not affect your liability.I have been in contact with the insurance company's solicitors over the past 3 years. I have sent them various medical records of my condition then and now.
His injuries were severe enough to be off work for months, and you thought a payout of a couple of grand would be all? Loss of earnings would be more than that alone...He was injured and taken to hospital but he was back at work a few months later.
Pretty much, yes.My question is, is there any legal recourse I can take? If the debt is so large can it ever be written off. Due to my mental state (which I have doctors notes and counselling notes for) can this do anything to lesson the amount owed?
Is bankruptcy my only option (which isn't cheap either)?
This really is one for that section of the forum - https://forums.moneysavingexpert.com/forumdisplay.php?f=136
A third of a million quid is a substantial debt, and it's massively unlikely you'll get your insurer to voluntarily write it off. Failure to declare NINE points is not a trivial oversight.
BTW, if you're still driving, you do know that you're going to need to declare everything to any new insurer, right? Including the voiding of the policy - and while the collision and points don't need to be declared after five years, policy cancellations are for life.0 -
Yes, it is. And that's why insurers have been asking for your licence number for the last few years, so they can check with DVLA. But some people view that as intrusive and refuse to do so...Supersonos wrote: »In this day and age, why is it still up to the driver to remember the details of any claims, points, accidents etc. from the last 3-5yrs? Surely this stuff is all on a central computer?
https://www.mib.org.uk/mib-insight/majority-of-insurers-now-using-the-mylicence-service/
Remember, until relatively recently, the primary record of penalties was the paper counterpart or licence, not the central record. Courts put things onto the paper, but not necessarily onto DVLA.0 -
Yes, it is. And that's why insurers have been asking for your licence number for the last few years, so they can check with DVLA. But some people view that as intrusive and refuse to do so...
https://www.mib.org.uk/mib-insight/majority-of-insurers-now-using-the-mylicence-service/
Remember, until relatively recently, the primary record of penalties was the paper counterpart or licence, not the central record. Courts put things onto the paper, but not necessarily onto DVLA.
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.0 -
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.
In part it's because the FOS looks unfavourably on pre-populated policy proposals (and claims forms for that matter) when it comes to disputes/complaints. The policy holder will claim they "didn't really know what they were signing" and the FOS will agree with them. So insurers require (prospective) policyholders to make a positive declaration in response to each question.0 -
They have to ask. The concept of uberrimae fidei no longer applies in consumer contracts of insurance since the law changed a few years ago and Carter v Boehm from 1766 ceased to be the relevant precedent. Law as it is today means that insurers offering contracts to consumers (rather than other businesses) cannot rely on the duty of utmost good faith on the insured to disclose all relevant facts, they are required to ask about anything they wish to know.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.Proud member of the wokerati, though I don't eat tofu.Home is where my books are.Solar PV 5.2kWp system, SE facing, >1% shading, installed March 2019.Mortgage free July 20230
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