Jump to content
House Price Crash Forum
Sign in to follow this  
Timm

Insurers Coaching Own Client To Admit Liability!

Recommended Posts

Anecdotal: I intend to self report this post to the Mods (because it is highly anecdotal), but thought it might be of interest to the main forum (and I might get some helpful input from any posters working in the insurance industry!)

A person close to me (very close, but not actually me) tells me that having made a claim on their motor insurance, their insurer has rung them up to put heavy pressure on them to accept liability because "If we go to court and lose, that will cost us a lot of money". From what I hear, the claim relates to a true "accident", where both parties were to some extent at fault, but one party (the other side) is unwilling to accept this. The inurance rep then said that if they lose, they might "go bust".

I can't imagine that insurers are really that close to the edge that one claim could send them over, but wonder:

1. Is this common practice to avoid legal costs?

2. Is it legal? It sounds like inverted coaching to me...

3. Is it possible both parties are insured by the same group and the insurer is trying to minimise payout? (The person I know was injured, the other party was not)...

Edited by Timm

Share this post


Link to post
Share on other sites

Could it be both are insured by same insurance co.

The other party is big fleet business customer - they discover they're both with the same insurer and the big company 'suggests' to the insurer that they're not taking liability and if they do they might be going elsewhere for their insurance needs.

Shot in the dark but this type of scenario definitely does occur.

Not sure about going bust though as thought there were pretty strict solvency type covenants for insurance co's - although you could've once said the same thing about banks.

Share this post


Link to post
Share on other sites

I would advise your friend not to admit liability. If he does then compensation for his injury will be reduced or lost altogether since his admission of guilt would make him responsible for the accident. Does your friend have legal cost insurance on his car policy? If he does then I would fight it. THis is my personal opinion and not legal advice.

If he has legal costs insurance on his car policy or his house policy then he should take advice from a lawyer or No win no fee claim lawyer to see if his rights will be affected.

If your friend genuinely feels they are not liable, then to state otherewise, if it came to court, would be a potential perversion of the course of justice.

i am assuming that the potential payouts are big, and this is a small insurance company. Their problem.

Share this post


Link to post
Share on other sites

I would advise your friend not to admit liability. If he does then compensation for his injury will be reduced or lost altogether since his admission of guilt would make him responsible for the accident. Does your friend have legal cost insurance on his car policy? If he does then I would fight it. THis is my personal opinion and not legal advice.

If he has legal costs insurance on his car policy or his house policy then he should take advice from a lawyer or No win no fee claim lawyer to see if his rights will be affected.

+1 very good advice.

Share this post


Link to post
Share on other sites

Could it be both are insured by same insurance co.

The other party is big fleet business customer - they discover they're both with the same insurer and the big company 'suggests' to the insurer that they're not taking liability and if they do they might be going elsewhere for their insurance needs.

Shot in the dark but this type of scenario definitely does occur.

Not sure about going bust though as thought there were pretty strict solvency type covenants for insurance co's - although you could've once said the same thing about banks.

Something is smelling fishy on this one.

Most (/all?) of the insurers / under writers are "loosing" money big time at the moment (claims up and investment income down as there is very little high quality investments (think AA rated and above) returning anything useful due to QE etc.

Another possibility the other party is with a different insurer/underwriter * who never pay out unless they are forced to in court, your insurer knows this and

a ) doesn't want you to use their legal insurance and drive up premiums...

b ) too many unresolved claims on their own books don't make the accounts look good so they want (need to settle so they don't have to make provisions in case) to settle in the cheapest way, i.e. get you friend to admit liability (say NO)

* typically client: fleet operators with bad claim histories and can be seen almost as an insurer of last resort.

Currently at work we have a big marine claim (think tens of thousands) where the other party is at fault (we have a nice piece of paper from officaldom saying so!) but the other parties insurers won't even respond to communication so our insurers paid out to us (without effecting no claims) and are intent on rinsing the other insurers who are legendary non payers because they have no leg to stand on this time and know they will get them in court...

Edited by koala_bear

Share this post


Link to post
Share on other sites

Thanks everyone - I'm glad I posted! What follows is more musing than direct questions:

I would advise your friend not to admit liability. If he does then compensation for his injury will be reduced or lost altogether since his admission of guilt would make him responsible for the accident. Does your friend have legal cost insurance on his car policy? If he does then I would fight it. THis is my personal opinion and not legal advice.

If he has legal costs insurance on his car policy or his house policy then he should take advice from a lawyer or No win no fee claim lawyer to see if his rights will be affected.

Two good bits of advice there.

Interestingly, the person feels so strongly about this that they are considering submitting a statement of fact that will automatically debar them from claiming for personal injury (from their own insurer), but making it clear that they totally refute the idea they were 100% to blame and wish to take that issue to court.

Is this suicide?

Could it be both are insured by same insurance co.

(...)

I'd wondered that, but had not considered the possibility that the other party might have more leverage.

Is this something that could be established by a FOI request?

If your friend genuinely feels they are not liable, then to state otherewise, if it came to court, would be a potential perversion of the course of justice.

i am assuming that the potential payouts are big, and this is a small insurance company. Their problem.

Your first sentance is a damn good point, and will I suspect, affect the outcome. As regards your second point, these things are all relative, but the case relates to personal ***** insurance (my redaction), and I'd be stunned if it materially affected the solvency of the (LARGE) insurance group. Having said that, this is a specialist wing of that group, that could for all I know be facing some sort of group rationalisation.

edit: panic.

Edited by Timm

Share this post


Link to post
Share on other sites

just politely say no thanks, and tell them to get on with the fracking service you paid them for.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.