insurance company wants payback

[notsosure62]

Can anyone shed any light on this once and for all.

 

My daughter was involved in a drink drive incident last may and

 

she was subsequently fined and banned.

 

At the time i was concerned about the damage she had caused and would the insurance company cover the third party damages cost.

 

The duty solicitor informed me that the insurance company, under the road traffic act will cover all third party claims.

 

However 14 months later my daughter has received a letter from her insurance company wanting £1400

and threatening court action if she does not pay up.

 

They are saying her insurance cover had become void because of her being over the limit and she would be responsible for any third party claims,

they have paid out and are now looking to being reimbursed.

 

I have had a look online for any information relating to drink/drive incidents and insurance companies recovering their losses.

 

This seems a bit of a grey area and would appreciate any information relating to this.

Edited August 22, 2014 by notsosure62

[Aretnap]

Admiral by any chance?

 

A few insurers do have clauses saying that they'll do thi in the event of a drink related accident. What the solicitor means is that the exclusion is covered by section 148 of the Road Traffic Act

 

http://www.legislation.gov.uk/ukpga/1988/52/section/148

 

Drunkenness would come under the physical or mental condition of the person driving the vehicle, so the insurer cannot refuse to pay a third party claim on account of it. However the section goes on to say (subsection 4) that the sum paid is recoverable from the insured. So if they've worded the exclusion correctly then in principle yes they can do this I'm afraid.

[unclebulgaria67]

Yes they can do this, if it is noted within the terms of the Insurance policy. You will need to check the policy carefully to see what it says. I know that some policies contain wordings which basically say that if you cause damage while driving intoxicated or there is willfull negligence, that the Insurers will seek to recover any outlay they make to a third party.

 

In these situations, you are always best to make a formal complaint to the Insurance company and to ask them to explain why they are seeking reimbursement for their claim outlay to the third parties. Ask them to enclose a copy of the policy wording they are seeking to use to recover their outlay.

[notsosure62]

cheers aretnap and unclebulgaria67 for pointing this out so quickly. Her insurance company was with Debenhams and her policy did say that under these circumstances they would seek reimbursement. I just thought after looking at a few things online that the insurance company might be trying it on and seeing if she would just pay up with a threatening letter.

[UK26]

Sorry if I come across unfair or rude however she had the choice to drink and then drive. We all know its wrong so why do it. Not only this but why should my insurance go up because of drink drivers!

 

Insurence is there to protect against accidents not inresponeseable drivers

[notsosure62]

Thanks for your input UK26, I totally agree with what you have to say. I have just asked about this situation as a concerned father worried about where his daughter stands in this seemingly grey area.