Hi,

Unsure if this is the correct area?

Need some help / advice please.

A relative has been involved in a accident where a car has gone into the back of his scooter at an island.

The driver admitted causing the accident (noted by a passing officer) so my uncle has perused a claim against the drivers insurance company axa (uncle ins, is 3rd Party)

Axa, have sent out their guy to view the bike, and has confirmed that the bike is a write-off.. (Garage purchased bike from has provided a report which details over £3k of damage - bike is worth £2400 at today price on auto trader)

Now despite any correspondence from Axa, my Uncle has now received a cheque "without prejudice"for £1,495.

He rang (yep i told him to email/write) and was informed that this value was less the scrap amount, of which uncle will have to scrap the bike.

The bike had passed service/mot two days before the accident with glowing colours & was in excellent condition (2015).

Should we send the cheque back to axa with copies of the garage reports & proofs of similar scooters from auto trader? (If so is there a template letter)

Or is the offer fair?

I'm not that clued up on the world of insurance.

Any advice is greatly appreciated.

Your uncle is entitled to be put back in the position he would have been were it not for the negligent act of the driver (or, as close to it as monetary compensation can achieve).

He should find out what he can get for scrapping his damaged bke.

If it is nowhere near £905 then he should

1) get 3 quotes for the scrap value

2) send the cheque back to AXA, with the 3 scrap quotes & valuation for replacing his scooter, asking them if they want to settle the whole sum and have the written off scooter, or the value of the replacement for the written off scooter less the higher of the scrap values and he'll scrap the damaged scooter.

3) note that he is entitled to the reasonable transport costs he is incurring as a result of the loss of use of his scooter ; (he can hire an equivalent scooter if that is as cheap or cheaper than his transport costs would otherwise be).

He should keep records of all costs he incurs as a (direct & foreseeable) result of their insured's negligent act.

Did he suffer any injury or damage to items other than the scooter?

Has he notified his insurers (even if he doesn't want them to action it as a claim on his behalf). One option his insurers may offer when the hear the other side has admitted liability is to deal with it as a no fault claim. He should ask if this (the claim, even as non-fault) rather than the fact there has been an incident would affect his premium.

Guru's : if his premium would increase as a result if the incident even if he doesn't claim through his insurers : is this also recoverable?

Since the effect of this could last several years - how is it calculated??

I have always thought that there should be no reason why consequential loss of increased future premiums should not be recoverable from at fault third party. However, because it is a future possible loss and cannot be quantified, then i don't think anyone pursues this. You would have to wait until after you had incurred the extra costs and then the third party would query whether Insurance had been shopped around for to minimise extra cost.

Agree about the other points. Axa need to pay current replacement cost and should do so, if evidence to support value is provided.

Thanks I will hunt around for other scrap quotes