Demand for money from insurance company

[newmoses]

To cut a long story short,

 

my wife fell out with a friend ,

then went to her house late one night and set the summerhouse on fire causing damage to 2 chairs and 3 cushions.

The summerhouse was smoke damaged only.

 

My wife was arrested and admitted the offence.

She is now in prison awaiting sentence

 

.I received a letter from Crawford, the victims insurer,

who are underwritten by Nationwide,

stating that they hold my wife responsible and are looking to her for recovery for their principals outlay.

 

They go on to say that the victim also had to pay a £300.00 policy excess.

 

Am I daft or are the insurance company trying to get my wife to pay for the excess, and the cost of replacing the summerhouse?.

The summerhouse was not fire damaged.

The only contents that were damaged had a total of around £35.00

.Both myself and my brother saw the so called damage the day after the incident.

 

The victim took out buildings and contents insurance on the house.

She was aware of a £300.00 policy excess on the insurance policy.

 

If she makes a claim then she forfeits the policy excess, regardless of whether any damage was accidental, malicious, or wear and tear.

 

If the court does not make an award to the victim against my wife, then I don't see how the insurers can force my wife to pay the money

 

.After all, insurers insure a person with the view to re-imbursing them if they have to make a claim.

 

They take the money and pay out in the event of a claim.

 

After all,that's what insurance is for isn't it?

 

Furthermore, the courts are punishing my wife, not the insurers, so what gives them the right to demand money from my wife making it a double punishment.

 

Is there any law allowing insurers to do this, or are they just trying to pull a fast one?

 

Any help, laws, etc would be appreciated.Incidentally,

my wife was diagnosed with depression in july.

 

The incident occured in October after she had mixed anti-depressants and alcohol.

[Mwynci]

There are 2 different basis of law applying here, criminal who are dealing right now and the civil courts.

If the criminal court makes your wife pay out for the damage caused the insurers and property owner cannot claim again for the damage, however if the criminal court do not award a payment, in law they can still pursue for the damage through the civil courts.

The insurers are fully within their right to pursue this. Whether they go the whole way is unsure right now, but they are a business after all protecting the interest of their customers, they have to try.

The cost may only be the £35.00, right now the adjusters are probably just spelling out the possible extent without knowing the true costs, again there is nothing wrong here. The smoke damage can be causing this, if the summer house didn't smell of smoke prior to the fire and now after cleaning will still smell of smoke, the other person has unfairly been placed into that position, therefore would be right to claim for a non smoke smelling summerhouse. Same goes for any furniture, whilst you may contents this, if they have experts saying this, you have a very weak case.

[newmoses]

Can I ask to see the victims insurance policy as I doubt the excess is anywhere near £300.00.I am guessing it is around £100-£150.00.Also,can I ask to see the fire brigade report to assess the true damage and likely cost?

[newmoses]

Can I ask to see the victims insurance policy as I doubt the excess is anywhere near £300.00.I am guessing it is around £100-£150.00.Also,can I ask to see the fire brigade report to assess the true damage and likely cost?

Mwynci If the criminal court makes your wife pay out for the damage caused the insurers and property owner cannot claim again for the damage, however if the criminal court do not award a payment, in law they can still pursue for the damage through the civil courts. UNQUOTE.iS THERE A LAW BARRING THE INSURERS FROM MAKING A CLAIM IF THE COURTS ORDER A COMPENSATION CLAIM?

[Mwynci]

Newmoses, to answer the excess query, don't waste your time questioing the amount of excess, that is a red herring, if the overall claim is for example £1000.00 it doesn't matter if the insurer claims £700.00 and the third party £300.00xs or the insured claims £850.00xs and the tp £150.00. You are of course entitled to see full supporting documentation for any claim they make (but not the policy).

You can see the fire report if they ( the insurers) have it. They may not have requested it as there is no need if they know what the cause is.

Regarding the law side, if the criminal courts make your wife pay for the damages (i.e. the chairs and cusions) caused then no then cannot claim a second time, there's nothing to stop them trying, but if you then allowed it to go to court the judge would throw it out, in that case it would not be worth them wasting their time or costs. If the isnurer's claim is not ready by the time the criminal court date, the criminal court will probably not include the isurers damages and then the civil action will need to be made.

Unfortunately there are loads of if's but's and what's here.

[newmoses]

Mwynci,many thanks for the valued help.The sentencing is scheduled for 10th february,providing my wifes lawyer has a psychiatric report by then.

[wonky100]

Yes the Insurers can come after your wife for the cost of the claim and the policy holders (your wifes friend) excess. It's called recovery. Whilst that is what insurance is for, an insurance company wants to make money like any other business and will seek to offset their costs. Agree that if the criminal courts have already awarded damages in favour of the insurance company then they would not be able to make another claim, this goes against the principle of indemnity, being put back in the position you were before the incident which led to the claim.

 

This isn't probably what you wanted to hear, sorry.

 

Hope all goes ok