Weekly Update - A Summary Of Recent Developments In Insurance, Reinsurance And Litigation Law - 28/11

This Week's Caselaw

W v Veolia Environmental Services

Whether defendant's insurers have to pay claimant's hire charges for a replacement car (where claimant has already paid those charges)

http://www.bailii.org/ew/cases/EWHC/QB/2011/2020.html

Following a motor accident caused by the defendant, the claimant hired a replacement car. Hire charges of £138,000 were incurred. The replacement car was provided by Accident Exchange and the claimant entered into two hire agreements with Accident Exchange. Under those hire agreements, the claimant's liability for the hire charges is deferred while a claim for hire costs is pursued against the defendant. In case the hire costs (and legal expenses) are not recovered by the defendant, these are insured by Accident Exchange (that policy being underwritten by another insurer).