Insurance oddities 18 months after a claim?

[eldar]

In early December 2009 a neighbour was driving along, stopped to turn right and the car behind ran into the back of him. Routine stuff, both cars undrivable, no one hurt, no argument about fault or what happened. No claims for whiplash, injuries or any dodgy stuff.

His car, a 2.5 year old Clio 197 was dragged off to the Renualt dealer for repairs, one back wheel was pointing in an odd direction... His insurance recommended a claims handling agent.

The car took 2 months to repair, Christmas/new year and delays in the dealer getting parts. He had a hire car (Golf or Polo) for the period, the Clio was his only car.

No problem, the car was fixed, and off everyone went happily.

Until 17 months later. Now he has a letter from a firm of solicitors telling him he has, has being emphasised, to sue the person who ran into him, and enclosing a contract of engagement including an engagement rate of £233 per hour.

It isn't clear who this lawyers are acting for, they seem slightly evasive and his insurance co don't seem to know about this.

He's told them to bog off, until he gets a letter from his insurer authorising the law firm to handle the claim on their behalf.

Their response is we'll do the claim, and you'll get summonsed and have to appear.

Its not a huge claim, £3,800 for the repairs, £2,720 for the hire car (£45 a day) and £30 incidentals.

WTF is going on. Is this kosher or some kind of scam?

[CampDavid]

Probably a scam.

[airportparking]

They might be acting for the claim handlers agency, tell your mate to be careful as by law he must co operate or they might come after him for costs

[LeeMad]

they need to contact the handling agent and see whats what. they may have still been unable to recover and now theyve instructed solicitors. they would have to get some stuff signed befoe they instructed them though to confirm that theres no other losses that need including

[bazking69]

Bin.

[mrmr96]

bazking69 said:

Bin.

possibly not. this could be how the insurance company are going about recovering costs.

[VeeFour]

mrmr96 said:

bazking69 said:

Bin.

possibly not. this could be how the insurance company are going about recovering costs.

But the OP says the insurance company don't appear to know about this.

I'd file it and do nothing until my insurers contacted me.

[davepoth]

If the insurance company have said that it's done, it's done. Get that in writing from the insurance company, put it with the solicitor's letter, and put it somewhere safe.

[frankthetank2]

hmn ask a professional opinion, or lawyer, maybe try writing into Honest John, they seem to be quite good on motoring legal matters.http://www.honestjohn.co.uk/

[LeeMad]

VeeFour said:

mrmr96 said:

bazking69 said:

Bin.

possibly not. this could be how the insurance company are going about recovering costs.

But the OP says the insurance company don't appear to know about this.

I'd file it and do nothing until my insurers contacted me.

if the insurers pass it to an accident management company then they will have no idea whats going on and whos involved and probably wont even have a claim/file set up.
the accident management company will have fixed the car and hired a vehicle on credit in the guys name so techincally he owes them a good few grand. if he doesnt co-operate with the solicitors the AM company would be well within their rights to bill him

[bazking69]

mrmr96 said:

possibly not. this could be how the insurance company are going about recovering costs.

Personally I refuse to deal with anyone other than my insurers, especially when it is unsolicited mail from god knows who. I pay my insurance to let my insurers deal with the claim.

[mrmr96]

bazking69 said:

mrmr96 said:

possibly not. this could be how the insurance company are going about recovering costs.

Personally I refuse to deal with anyone other than my insurers, especially when it is unsolicited mail from god knows who. I pay my insurance to let my insurers deal with the claim.

That may or may not be a good idea my friend.

[Alex97]

eldar said:

WTF is going on. Is this kosher or some kind of scam?

It sounds like your neighbour has been referred to an accident management/credit hire company by his insurance company. The contract he signed would have given them the right to litigate in his name. They are trying to recover the credit repair/hire and he will have to cooperate or face paying the charges himself.

[eldar]

Alex97 said:

It sounds like your neighbour has been referred to an accident management/credit hire company by his insurance company. The contract he signed would have given them the right to litigate in his name. They are trying to recover the credit repair/hire and he will have to cooperate or face paying the charges himself.

Thanks for that, appreciated. I'll get my neighbour to dig out the paperwork and read it. Also keep on at his insurance co. to find out why this is happening. I assume this has arisen because the other insurer hasn't paid?

[Alex97]

eldar said:

I assume this has arisen because the other insurer hasn't paid?

Correct. If it is truly a non-fault claim, then the payment of the credit repair has just been delayed as the third party insurers are disputing the hire charges. If this is the case and they fail to agree hire charge costs, he will have to attend court and give evidence. He will also have to provide bank statements, wage slips and other financial documents to prove his financial status at the time of the accident.

In regards to why his insurance company allowed this to happen: referral fees.

[eldar]

Alex97 said:

Correct. If it is truly a non-fault claim, then the payment of the credit repair has just been delayed as the third party insurers are disputing the hire charges. If this is the case and they fail to agree hire charge costs, he will have to attend court and give evidence. He will also have to provide bank statements, wage slips and other financial documents to prove his financial status at the time of the accident.

In regards to why his insurance company allowed this to happen: referral fees.

Makes sense, I guess. I did wonder why a management company was involved in a straightforward seeming accident. Though if the ins co. recommend one in return for some cash...

Thanks again.

[eldar]

Update on this. No reply from either the solicitors or the insurance company which is ultimately Sun Alliance, who rather look like they have been caught at 'outright fraud' and sharp practice.

Wait and see...

http://news.bbc.co.uk/1/hi/programmes/moneybox/959...