Bell Lax acted for a client who was a Defendant in proceedings arising from a road traffic accident. At the time of the accident, our client was driving a hire vehicle.
Our client admitted he was at fault for the accident but, ordinarily any claim brought by a Claimant is dealt with by the insurer of the ‘at fault’ vehicle. However, the insurer of the hire vehicle refused to indemnify our client on the basis that they were not the relevant insurer. The insurer argued that our client’s insurance policy for his own vehicle extended to hire vehicles.
Upon Bell Lax reviewing the terms of the hire agreement, it was clear that the insurer of the hire vehicle was the relevant insurer. We then brought an additional claim against the insurer of the hire vehicle seeking an indemnity.
Shortly thereafter, the insurer agreed that they were the correct insurer and they settled the Claimant’s claim against our client. Bell Lax were able to recover a substantial contribution towards the legal costs paid by our client in defending the claim from the insurer of the hire vehicle.
