Following a road traffic accident, the other driver’s insurance company may contact you directly and offer to manage your car accident claim. It may off to arrange repairs, provide a replacement vehicle, agree the pre-accident value of your car or settle a personal injury claim.
This practice is known as third-party intervention. To insurers, it can provide a quick and practical solution, but motorists should understand that the insurer represents the other driver’s interests and does not provide independent advice to the person making the claim.
What is third-party intervention?
Most major motor insurers have huge teams responsible for contacting people who may have claims against their policyholders. They may be described as intervention teams, third-party assistance teams or third-party claims teams.
Normally Lacey Solicitors will take instructions in the days after the accident, but certainly it is not uncommon to hear ‘the insurance company for the other driver have been trying to reach me and make me an offer for my injury to settle the case.’
On one occasion one of our client’s even received a bouquet of flowers from the at fault insurer asking them to make contact!
The practice is recognised by the Association of British Insurers’ Third Party Assistance Code. It applies where an insurer contacts an unrepresented individual following an accident involving its policyholder and offers to deal directly with some or all of the claim.
Our experience is that the insurer will offer to:
- inspect the damaged vehicle;
- arrange repairs through an approved repairer;
- provide a replacement vehicle;
- remove the vehicle from storage;
- deal with salvage;
- make an offer where the vehicle is a total loss;
- address other financial losses; or
- arrange medical assessment, treatment or rehabilitation.
A person contacted in this way is not obliged to accept the services proposed. The ABI Code provides that an unrepresented claimant should be informed in writing that there is no obligation to accept any or all of the assistance offered.
Why does the insurer make contact so quickly?
The principal reason is to control the handling and cost of the claim.
Motor claims can increase substantially where a damaged vehicle remains in storage or a replacement vehicle is required for an extended period. Repair charges, recovery and storage costs, vehicle hire, loss of earnings and other losses may all form part of the eventual claim.
Early intervention allows the insurer to manage those costs. It may move the vehicle from a storage yard, arrange repairs through its own approved network or provide a replacement vehicle through an established supplier with whom they have an agreement. If the vehicle is beyond economic repair, it may seek to agree the pre-accident value promptly.
These steps can benefit both parties. The Plaintiff may obtain a replacement vehicle and repairs without delay, while the insurer prevents avoidable charges from accumulating. The parties’ interests are not, however, identical.
The Plaintiff is entitled to recover the reasonable loss caused by the accident; the insurer has a commercial interest in controlling the amount paid.
Do I have to deal directly with the other driver’s insurer?
No. A Plaintiff is not required to accept the other insurer’s arrangements merely because contact has been made.
Depending upon the circumstances, a person involved in a non-fault accident may:
- claim under their own comprehensive motor policy;
- deal directly with the responsible driver’s insurer;
- instruct a solicitor;
- use an accident-management company; or
- make other suitable arrangements for repairs and a replacement vehicle.
Each route has different consequences and outcomes. The appropriate course will depend upon liability, the condition of the vehicle, the need for a replacement vehicle, the existence of personal injury and the terms upon which assistance is offered.
For a broader explanation of the claims process, see our guide to car accident claims in Northern Ireland.
Is dealing directly with the insurer a bad idea?
Not necessarily. Our office has seen where direct intervention can work effectively. Most often when liability is accepted and suitable assistance such as replacement vehicles are provided without delay.
They can often avoid the need to enter a credit-hire or credit-repair agreement. Those agreements doprovide valuable assistance where a Plaintiff cannot fund a replacement vehicle or repairs in advance, but they can lead to disputes about whether the charges are recoverable.
Our office has seen when these practices go wrong, unsuitable replacement vehicles that are not like for like, pre-medical offers that are not reflective of compensation for NI and even poor repairs.
The decision should be based on the substance of the insurer’s proposal and any online reviews rather than an assumption that intervention is either always beneficial or always prejudicial.
The insurer does not act for you
A Plaintiff dealing with their own insurer has a contractual relationship under the motor policy. A complaint about that insurer’s handling of the policy may be referred to the Financial Ombudsman Service.
The position is different when dealing with another driver’s insurer. The Plaintiff is not that insurer’s policyholder, and the Financial Ombudsman Service cannot investigate a dispute between a Plaintiff and a third party’s insurer where there is no relevant customer relationship.
The ABI Code recognises this distinction. It provides that an unrepresented Plaintiff should be advised of the limits upon the Financial Ombudsman Service’s jurisdiction and informed of the right to obtain independent legal advice.
An insurer can explain what it is willing to provide. It cannot independently advise the claimant whether the proposal represents the proper value of the claim or adequately protects the claimant’s legal position.
Total-loss valuations
The valuation of a written-off vehicle is a frequent source of disagreement and one that our office sees repeatedly throughout the day. The appropriate measure is generally the vehicle’s reasonable pre-accident market value. An initial offer should not be treated as conclusive where comparable vehicles cannot be purchased for the amount proposed.
Relevant evidence may include:
- make, model and age;
- mileage;
- specification and optional extras;
- pre-accident condition;
- service and maintenance history;
- recent expenditure on the vehicle; and
- the advertised price of genuinely comparable vehicles.
A Plaintiff who considers the valuation inadequate should request the basis of the insurer’s calculation and provide appropriate supporting evidence before agreeing a final settlement.
Replacement vehicles
Before accepting a replacement vehicle, the Plaintiff should establish:
- whether it is suitable for their reasonable needs;
- who will supply and insure it;
- whether any charge may fall upon the claimant;
- how long it will remain available;
- whether it is like for like;
- when it may be withdrawn; and
- what will happen if liability is later disputed.
Particular care is required where the damaged vehicle is a taxi, commercial vehicle, motorcycle, prestige vehicle, adapted vehicle or other specialist vehicle. A standard replacement car may not meet the plaintiff actual needs or prevent an ongoing loss of earnings.
Personal injury claims
Early settlement requires greater caution where personal injury is involved. The nature and duration of an injury may not be apparent immediately. Symptoms may develop or persist, further treatment may become necessary, and the claimant may incur loss of earnings, care costs, travel expenses or other losses.
A full and final settlement agreed before the medical position is understood may undervalue the claim and ordinarily prevents the claimant from seeking additional compensation if the injury proves more serious than anticipated.
The ABI Code recognises circumstances in which independent legal advice should be strongly recommended, including disputed liability, allegations of contributory negligence, persistent or complicated injuries and disputes about causation.
Information to obtain during the call
Before making a decision, obtain:
- the insurer’s name and claim reference;
- confirmation of the policyholder involved;
- confirmation of whether liability has been formally admitted;
- full details of the services offered;
- confirmation of any cost or contractual liability;
- clarification of whether a payment is interim or in full and final settlement; and
- written details of any stated time limit.
There is no requirement to decide during the telephone call. The proposal can be requested in writing and considered before it is accepted.
When should independent legal advice be considered?
Independent advice may be particularly important where the claim involves personal injury, disputed liability, contributory negligence, loss of earnings, credit hire, substantial storage charges, a disputed vehicle valuation or a specialist vehicle.
The solicitor’s role is not to create an unnecessary dispute. It is to identify the losses recoverable in law, assess whether the insurer’s proposals are reasonable and protect the claimant where further investigation is required.
Advice from a Belfast car accident solicitor
Lacey Solicitors advises clients throughout Northern Ireland following road traffic accidents. We regularly deal with motor insurers, accident-management companies and claims involving vehicle damage, total-loss valuations, replacement vehicles, credit hire, storage charges and personal injury.
Where an intervention proposal is reasonable, we will advise accordingly. Where further investigation is required, we can identify the outstanding issues and deal directly with the insurer on the client’s behalf.
If the other driver’s insurance company has contacted you about a car accident claim and you are uncertain whether to accept its proposals, contact Lacey Solicitors before agreeing a final settlement.
Frequently Asked Questions
Why has the other driver’s insurance company contacted me?
The insurer has probably been notified of the accident by its policyholder and wishes to deal directly with the resulting claim. This is known as third-party intervention or third-party assistance.
Am I required to accept its assistance?
No. The ABI Third Party Assistance Code provides that an unrepresented Plaintiff should be informed that there is no obligation to accept any or all of the services offered.
Can the other driver’s insurer arrange repairs or provide a replacement car?
Yes. It may inspect the vehicle, arrange repairs through an approved repairer and offer a replacement vehicle. The claimant should confirm the terms, insurance arrangements and period of availability before accepting.
Can I complain to the Financial Ombudsman Service?
Usually not. The Financial Ombudsman Service cannot generally investigate a dispute between a claimant and another driver’s insurer because the claimant is not that insurer’s customer.
Can I appoint a solicitor after speaking to the insurer?
Yes. Speaking to the insurer does not prevent a claimant from obtaining independent legal advice or asking a solicitor to assume conduct of the claim.
