Motor Car accident , Insurance company say the driver was not covered by Trader insurance

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Dinny

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My Brother in Law was involved in a serious accident back in 2009. He sustained serious injuries and still has rehab on going. He collided head on with another car and was found to be at fault. The other party was also injured and are claiming of his insurance.
At the time he paid almost €2000 for motor trade insurance as he was selling a few cars as well as working in a motor factors shop. The name of the shop was included on his insurance policy. The car he was driving did not belong to him but he had full consent to drive it.
His insurance company now say that he was not covered, his solicitor had it reviewed by a barrister and he said he was insured. The other parties insurance want to take a case directly against my brother in law and tried to serve some type of papers on him.
His solicitor is not too worried about the process but my brother in law is very worried, is there any group he could talk to about this. Would it be worth his while to talk to his local TD. Any advice would be grateful
 
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I can't see how a TD would help. Was he driving in connection with the motor factors shop at the time of the accident? Was it his own policy or a business policy (via the shop)?
 
He was traveling home from his work. It was his own policy, he is only employed by the shop. The insurance company has 12 simliar cases were they are refusing to honour their policy(he told this by an inusrance broker).
I was thinking the TD could give advice as he is being put under server pressure regarding pending court cases from a mental point of view. He likely will never work again due to the physical injury. He is only a young man with 3 kids and now he is looking at being sued.
 
Did you find out why the insurer is refusing indemnity (in reality they will have to pay the 3rd parties costs and then try to reclaim the costs from you brother in law)? It would have to be a pretty serious reason for a company to refuse indemntiy. It may be the company trying to wriggle out of a claim that they should be paying. I would think his solicitor & insurance broker are the best people to talk to.


www.powerinsurances.ie
 
In who's name was the policy - brother, shop, ltd company or what?

In who's name is the car registered?

Was he using the car for work or private purposes?

You have a broker. Has s/he told you why the claim is not being dealt with under the policy?
 
In his own private name. He is only an empolyee of the shop. The insurance issue is nothing to do with the shop.
The car was registered in his friends name
He was driving home from work
The broker confrimed he was insured but the insurance company are still not accepting liablity
 
The company will not specify the reason they are refusing indemnity to his solicitor.
 
if an insurer declines a claim, they are obliged to give the reason for refusing it! If his broker cant tell him, then the broker isnt doing his job!
 
I was hit by an uninsured driver last feb. He was then done for no tax. He was also stoned out of his head when he hit me. Question is, if i claim off my own policy will my premium go up next year? The broker is relucant to say, and the insurance co have also said they will not put it in writing that the premium wont increase. Please clarify if you can lads and ladies?
 
your own insurer should be able to process the claim as insurer concerned with with the MIBI. They handle the claim on your behalf and they don't affect your no claims bonus.

If you are asking an insurer to confirm that your premium will not rise for next year, no one will confirm that in writing. It's not that the claim won't impact, its that the rate will have gone up by then and so will your premium regardless of the claim.
 
The insurance company is refuisng to give the reason for delcing the claim. Is there a group or body he can go to regarding this
 
Seems v strange that the company did not inform the broker why they have refused the claim, but if what your saying is correct, he can contact the Insurance Federation of Ireland who will contact the company on his behalf and insist on a reason.

www.powerinsurances.ie
 
How can the insurance issue have nothing to do with the shop, if the shop is named on the policy?

As others have said, insurer MUST give reasons for declining indemnity. And also stated the broker is NOT doing his job.
 
Thanks for all the replys

The shop is named as his place of employment. The policy is in his private name and he was just a PAYE worker there.

I suggested he go back to his broker who have told him he is insured to speak to the insurance company on his belhalf. He asked for a policy were he could be covered to drive any car 3rd party and they say this is what he has. If this is not the case can he take a case for being mis sold insurance. I think this may put pressure on the broker to do something.

The other parties solicitors have served him papers and are taking a civil action against him as his insurance company is refusing to accept he was covered.
 
Motor trade policies can have a lot of grey cover area's. For example, if the vehicle was registered to a named driver or excluded under the policy (as a sports car for example), he may not be technically covered. I would ask his solicitor to write to the insurance company directly and ask for them to state in writing why they are not indemnifying his client. Until he gets that, he is only guessing to the reason and will not be able to fight the decision.


www.powerinsurances.ie
 
Would freedom of information be a cheaper option rather than paying for a solicitor letter?

S.
 
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