Car insurance indemnity issue

[jenny012]

Hi
I'm hoping someone can help me understand the situation I'm currently in.
I was sat in stationary traffic and the person in the car behind drove into the back of me. They claimed the sun was in their eyes. We exchanged details and I later contacted my insurance company. I was told it was a straight forward case and within a couple of days my car was taken to a garage and I was put in a hire car. Since then my insurance has informed me that my car is a category c write off, has agreed a value for my vehicle and have all my vehicle documents so they can scrap my car. I was told to wait till I received my payment in the post and then I must return the hire car.
I haven't received the payment and when I contacted my insurance company they said the other insurance company hadn't accepted liability yet. When I asked why they said that the other insurance company hadn't been able to contact their client. By this point it had been 5 weeks since the incident. I was told that the insurance company was going to send out a letter and if their client didn't respond then they would make a without prejudice payment. (This was how it was explained to me but not sure of the exact wording). It has been over three weeks since then and I've now been told that the other insurance company is currently unable to make the 'without prejudice payment' because they have indemnity issues and they are also trying to push me into claiming on my own fully comp policy.

My insurance company seem to be struggling to explain what this means. They just keep saying to stay in the hire car and either claim on my own policy or wait but they haven't given me any indication of how long this could take.
Could someone please try and explain what indemnity issues actually are, what this potentially means for me and if possible some advice.
Thanks in advance for any light you can shed on the situation for me.

[des8]

Re: Car insurance indemnity issue

Hi and welcome to Legalbeagles.
Sorry to hear about your problems.
Could you clarify the situation please:
Is your insurance Fully Comprehensive or Fire theft and Third party only?
Who are your insurers?
Have you actually claimed on your policy, or just advised them of the incident?
Are you dealing with your insurers directly or through a broker/intermediary?

I suspect your insurance company are delaying paying out until they get an agreement from the other driver's insurers to reimburse them whatever they pay you i.e. they are looking to the other company to indemnify them and want to agree values before they do this.
If you have comp insurance this is a bit naughty if you have claimed on your policy and agreed a value. They should pay you the value, less any excess. They then recover their money from the other side, and you claim against the other side for your excess and any other costs not reimbursed by your own insurers.

But without more details it is difficult to be certain.

[jenny012]

Re: Car insurance indemnity issue

Hi

I'm fully comp and my insurance is through Endsleigh which is a broker. I rang them to inform them of the incident and they put me through to Quindell who now act on their behalf. I'm not claiming through my own policy. The value was discussed with me by Tecreport who then confirmed it with Quindell. They then sent me a slip to sign to say I agree with the valuation. They have also had my v5 and I believe they've scrapped my vehicle.
It is only since I sent them those documents that I've been informed that there is an issue of indemnity with the other person's insurance.

[des8]

Re: Car insurance indemnity issue

If you want to settle this claim within a reasonable time frame you need to claim on your own insurance, although you may now have a problem if your vehicle has been crushed.
IMO your vehicle should not be crushed until the claim has been settled as if there are problems the proof has been destroyed.
Effectively you are claiming against the third party, whose insurers appear to be dragging their feet.
Did you instruct Endsleigh not to approach your insurers?
Have your insurers been advised of the accident?
I would suggest that all communications are now in writing. It is possible the other parties insurance company are questioning if the person who hit you is insured (he may have given false info on his proposal or there could be other problems)
Ask Endsleigh, (with copy to Quindell), to write to you with a detailed explanation for the delay. Insist on a written response.
At the same time request confirmation of exactly what they are claiming on your behalf. (this should include
cost of hire car until you are paid out and have time to replace your vehicle, cost of any fares incurred whilst you were without a car and a daily compensation amount for any days you were without a car, and of course any personal injury claim).

When you have more info it might be possible to give more advice, but in the meantime can you advise us the names of the insurance companies involved?