insurance law Archives - Lacey Solicitors | Specialist Insurance Law Firm

Tinnitus Claim Compensation Belfast: Expert Legal Help from Lacey Solicitors

Posted on 13 March 20253 March 2025 by Lacey Solicitors

If you’ve developed tinnitus following a car accident, you may be entitled to claim compensation and make a tinnitus claim. Lacey Solicitors in Belfast previously wrote about Noise Induced Hearing Loss and Tinnitus injuries. Lacey Solicitors in Belfast are experience hearing loss solicitors specialising in tinnitus claims. At Lacey Solicitors, we understand the challenges that tinnitus brings, and our expert team is dedicated to helping you secure the compensation you deserve. Contact us for a free consultation and let us guide you through the claims process with care and expertise.

Tinnitus, the perception of ringing, buzzing, or hissing in the ears, is a distressing condition that can significantly impact your daily life. For those who develop tinnitus following a car accident, the emotional and physical toll can be compounded by the trauma of the incident. If you’ve experienced tinnitus after an accident, Lacey Solicitors Injury Law Firm in Belfast is here to help you secure the compensation you deserve. Our team of experienced personal injury solicitors understands the difficulties of living with tinnitus and is ready to provide expert legal guidance.

What is Tinnitus and How Does It Relate to Accidents?

Tinnitus refers to the sensation of hearing sounds such as ringing, buzzing, or hissing without any external source. While it can vary in intensity and duration, tinnitus can have a significant effect on a person’s quality of life. It’s typically regarded as a symptom rather than a disease, and in many cases, it can be triggered by head or neck injuries sustained in an accident.

Causes of Tinnitus After a Car Accident

Tinnitus can develop after a car accident due to a variety of factors associated with the trauma of the crash. Common causes include:

Whiplash: A sudden, jerking motion of the head and neck, often seen in rear-end collisions, can lead to whiplash. This injury can disrupt blood flow and nerve function related to the auditory system, which can cause tinnitus.
Traumatic Brain Injury (TBI): A direct blow to the head or severe shaking can cause brain injuries that damage the auditory pathways, leading to tinnitus.
Exposure to Loud Noises: Accidents often involve loud noises, such as the deployment of airbags or the crash itself. These noises can damage the delicate hair cells in the inner ear, which can cause both hearing loss and tinnitus.
Pressure Changes: During rapid deceleration, the pressure change in the ear can cause damage to the eardrum or other structures in the middle and inner ear, potentially leading to tinnitus.
Physical Damage to the Ear: In some cases, accidents can cause cuts, fractures, or other injuries to the ear, including damage to the eardrum or cochlea, which can result in tinnitus.
Stress and Anxiety: Emotional distress following an accident can exacerbate tinnitus. Anxiety often amplifies the perception of internal sounds, making the condition more noticeable.

Health Implications of Tinnitus After an Accident

Tinnitus can have wide-ranging effects on your physical and mental well-being. Common implications include:

Sleep Disturbances: The constant noise can make it difficult to sleep, leading to fatigue, irritability, and difficulty concentrating during the day.
Concentration Problems: The persistent sound can act as a distraction, which affects your ability to perform tasks and work efficiently.
Mental Health Struggles: Chronic tinnitus can lead to anxiety, depression, and frustration. The condition may also result in social isolation if it prevents you from engaging in social activities.
Physical Discomfort: Stress and anxiety associated with tinnitus can lead to physical issues such as neck and jaw pain, headaches, and tension.

What Treatments Are Available for Tinnitus?

While there is no universal cure for tinnitus, there are several treatments available that can help alleviate symptoms and improve your quality of life:

Sound Therapy: White noise machines or tinnitus maskers can help by masking the internal sounds, making tinnitus less noticeable.
Cognitive Behavioural Therapy (CBT): CBT can help you manage the emotional and psychological effects of tinnitus by reducing stress and anxiety.
Tinnitus Retraining Therapy (TRT): TRT combines sound therapy with counselling to help you adjust to tinnitus and reduce the emotional distress it causes.
Neuromodulation: A new treatment that combines sound and electrical stimulation of sensory pathways has shown promise in reducing the severity of tinnitus.
Medications: Antidepressants or anti-anxiety medications may help alleviate symptoms. Additionally, non-medicated therapies like yoga, meditation, and mindfulness can also provide relief.

While treatments can improve the condition, for some individuals, tinnitus may be a long-term issue, especially following an accident.

How Much is a Tinnitus Claim Worth in Northern Ireland?

If you have developed tinnitus following a car accident, you may be wondering how much compensation you could be entitled to. While there is no precise formula for determining the value of a tinnitus claim, guidance is available to estimate potential compensation based on the severity of the condition.

Here’s a rough guide to compensation amounts for tinnitus in Northern Ireland:

Mild Tinnitus: If your tinnitus is mild and doesn’t significantly interfere with your daily life, compensation can be up to £20,000.
Moderate Tinnitus: For moderate tinnitus, where symptoms cause a moderate level of disruption, compensation can range from £20,000 to £40,000.
Severe Tinnitus: In cases of severe tinnitus, where the condition has a significant impact on your ability to lead a normal life, compensation can range from £40,000 to £90,000.

It’s important to note that these amounts are general guidelines, and the actual compensation in any case will depend on the specific circumstances. A judge will assess your case based on their experience, training, and sense of fairness, which means compensation may vary depending on your individual condition.

How Can Lacey Solicitors Help You Get Compensation for Tinnitus?

If you developed tinnitus following an accident, you may be entitled to compensation for the physical, emotional, and financial burden caused by the condition. Lacey Solicitors Injury Law Firm in Belfast can help you navigate the claims process and secure compensation for:

Pain and Suffering: Compensation for the distress and discomfort caused by tinnitus.
Medical Costs: Covering the cost of private treatments, therapies, and hearing aids related to tinnitus.
Loss of Earnings: If tinnitus has affected your ability to work, you may be entitled to claim compensation for lost income.
Future Care Needs: If you require ongoing treatment or support for tinnitus, we can help you secure compensation for future expenses.

Time Limits for Tinnitus Claims

In Northern Ireland, you generally have three years from the date of the accident or from when you first became aware of your tinnitus to make a claim. It’s essential to consult with a solicitor as soon as possible to ensure you don’t miss the deadline for your claim.

Contact Lacey Solicitors Today for Expert Legal Help

If you’ve developed tinnitus after a car accident, Lacey Solicitors Injury Law Firm in Belfast is here to help. We offer a free consultation to assess your case and guide you through the legal process.

Our team of expert solicitors is dedicated to helping you recover compensation for the suffering caused by tinnitus. Contact us using our online form today to get the legal support you need.

Defence of Volenti Non Fit Injuria in Insurance Law: Applications in Workplace, Motor and Public Liability Claims.

Posted on 5 March 202527 February 2025 by Lacey Solicitors

When it comes to insurance claims, particularly in personal injury cases, the defence of volenti non fit injuria plays a significant role. Derived from Latin, the term translates to “to a willing person, injury is not done.” This legal principle is often invoked by defendants in a variety of cases, including Employers Liability, Public Liability and Motor Liability claims. But how does this defence work in practice? In this article, we will explore the concept of volenti non fit injuria and how it might be applied in different accident scenarios, using real cases from our office.

What is Volenti Non Fit Injuria?

Volenti non fit injuria is a defence used in personal injury cases to argue that the Plaintiff willingly accepted the risk of injury, thus negating any liability for the defendant. This defence essentially asserts that the person who suffers harm or injury did so voluntarily and with full knowledge of the risks involved.

In order for this defence to succeed, the defendant must prove that:

The plaintiff had knowledge of the risk involved in the activity or situation.
The plaintiff voluntarily consented to take that risk and in doing so waives any right of action against the defendant in respect of any breach of duty of care or injury arising therefrom.

If the answer to each is in the affirmative then the wrongfulness of the Defendant’s conduct is excused and claimant is precluded from recovering damages

Employers Liability Claims

Workplace accidents are a common area where the defence of volenti non fit injuria (the voluntary assumption of risk) may be raised. Employers and insurance companies might invoke this defence when they believe an employee has voluntarily assumed a risk associated with their work. For example, if an employee willingly engages in a hazardous activity without proper safety equipment or training, an employer may argue that the employee accepted the risks involved.

However, it is challenging to successfully apply the defence of volenti non fit injuria in workplace accidents. Employees have a statutory right to work in a safe environment, and employers are legally required to take steps to ensure the safety of their workforce. If an accident occurs due to employer negligence—such as failing to provide adequate training or safety measures—the defence is unlikely to succeed. In such cases, the injured employee can pursue compensation for their injuries.

A recent case we handled involved a construction company working on a residential project in Belfast. At the time, the house had only been completed to the first floor level, and no scaffolding or barriers had been installed. The plaintiff, an employee, was aware that the scaffolding and barriers had not yet arrived but was eager to continue the work. Without the employer’s knowledge or permission, he began working, leading to a fall from a height of 15 feet and serious injury.

In our defence, we argued volenti non fit injuria on the grounds that the plaintiff knowingly began work without the authority to do so and voluntarily accepted the risks involved in working in unsafe conditions, without proper safety measures.

Public Liability Claims

Volenti non fit injuria can also play a role in public liability claims, such as slip-and-fall incidents. For example, if someone knowingly participates in an activity with inherent risks, such as attending a sports event or engaging in a dangerous recreational activity, this defence may be invoked in the event of an accident.

We represented a security management company hired to provide security services at a live music event. One of the attendees, the plaintiff, decided to crowd surf during the performance and sustained a serious head injury after colliding with a metal barrier at the front of the venue. In our defence, we argued that the plaintiff voluntarily exposed herself to the risk of injury by engaging in the inherently dangerous activity of crowd surfing.

Motor Liability Claims

While the defence of volenti non fit injuria is less commonly applied in motor accident claims, it can still be relevant. For example, if a driver willingly engages in dangerous behaviour, such as racing or driving under the influence of alcohol, the defendant may argue that the claimant voluntarily assumed the risk of injury. To succeed, the defendant would need to demonstrate that the claimant knowingly participated in the risky conduct.

In a recent case, we were instructed by an insurer to act on behalf of their policyholder, who chose to drive a motor vehicle intoxicated and caused a collision where the Plaintiff was a passenger in his vehicle. Both parties were friends and had consumed alcohol, and despite being intoxicated, the defendant chose to drive all parties home. The plaintiff accepted a ride from the defendant, fully aware that the driver was under the influence. We raised volenti non fit injuria in our defence, arguing that the plaintiff voluntarily assumed the risk of injury by accepting a lift from an intoxicated driver.

Key Considerations of Volenti Non Fit Injuria for Insurance Law Firms

For insurance law firms in Northern Ireland, understanding the nuances of volenti non fit injuria is essential when defending or advising clients in personal injury cases. Here are some key factors to consider:

Risk Awareness and Consent: The claimant must have known and voluntarily accepted the risk involved. This is often difficult to prove, especially in cases where the individual was not fully aware of the potential danger or was under duress.
Employer Duty of Care: In workplace accidents, the employer’s responsibility to provide a safe working environment is paramount. Volenti non fit injuria is unlikely to succeed if the employer was negligent in fulfilling this duty.
Public Liability Considerations: In public liability claims, defendants may attempt to invoke volenti if the claimant knowingly assumed the risk. However, if negligence is present—such as failure to provide adequate warnings or safety measures—the defence is less likely to succeed.
Motor Liability Defences: While volenti can be raised in motor accident claims, it is typically unsuccessful unless the claimant was engaging in reckless behaviour that directly contributed to the injuries.

Conclusion

The defence of volenti non fit injuria is an important legal concept in personal injury claims, and its application can vary depending on the circumstances surrounding an accident. Whether the case involves a workplace accident, a public liability claim, or a motor liability claim, understanding when and how this defence can be invoked is crucial for both plaintiffs and defendants. Insurance law firms in Ireland must carefully assess the facts of each case and consider all elements of risk, consent, and negligence when determining the viability of this defence.

For insurance companies, working with experienced legal counsel can ensure that claims are appropriately defended, while claimants must be aware of their rights and the challenges of countering this defence. Legal professionals play a key role in navigating the complexities of volenti non fit injuria and ensuring fair outcomes for all parties involved.

Understanding Diminution in Car Accident Claims: Restitution Ad Integrum & Insights from Payton v. Brooks

Posted on 26 February 202526 February 2025 by Ruaidhri Austin

Diminution in Car Accident Claims: A Guide to Restitution Ad Integrum and the Payton v. Brooks Case

For motor insurers and Plaintiff’s alike, diminution in value of a motor vehicle following a road traffic collision is a constant issue. When a car is involved in an accident, it may suffer both physical damage and a reduction in its value. This can lead to disagreement over how much compensation should be paid. The key principle that arises in such cases is restitution ad integrum, a Latin phrase that refers to restoring the Plaintiff to their original position before the damage occurred.

Understanding Diminution in Value

Diminution in value is the reduction in a vehicle’s market value after an accident, even if the car is repaired to its pre-accident condition. This can be particularly significant when a vehicle, once repaired, is worth less than it was before the accident due to its accident history. The Diminution will occur at the time the accident damage but often one won’t feel the loss until the vehicle is sold. How can one properly assess and compensate for this supposed decrease in value that wouldn’t be felt until the vehicle is sold? While the damage might be physically repaired to a high standard, the vehicle’s resale value may never fully recover.

Restitution Ad Integrum and its Application in Car Accident Claims

The principle of restitution ad integrum is central to car accident claims, particularly in cases involving diminution in value. The phrase translates to “restoration to the original condition,” meaning that the goal is to return the injured party to the position they were in before the damage, as much as possible. In the context of car accidents, this could involve either repairing the vehicle or compensating the owner for the loss in market value due to the accident.

However, achieving restitution ad integrum is not always an exact science. The principle assumes that the car’s pre-accident condition can be restored or compensated for. But in reality, various factors complicate this ideal. A key example can be found in older vehicles or those with high mileage.

Case Law: Payton v. Brooks (1974) and Coles v Heatherton (2013)

Payton –v– Brooks (1974) was heard in the Court of Appeal, and it set out that a claim can be brought for Diminution due to the need for a vehicle to have repair work done after an accident.

The logic being that if the overall cost of the vehicle repairs does not cover the financial loss to the owner, there is no reason why the owner should be denied additional compensation under that head of damage.

On a similar note, Coles –v– Hetherton (2013) recognised that financial loss to a vehicle owner is realised upon damage to the vehicle. This loss is not just from the cost of the repairs, it is Diminution.

Covering the price of repairs to reinstate the vehicle to its original condition is merely a contribution towards the Diminution. The Courts could award a sum of compensation exceeding the cost of the vehicle repairs if it deemed to be justified.

However, it also established that each case should be assessed individually, considering various factors such as the car’s age, mileage, and condition before the accident.

A Case-by-Case Assessment of Restitution Ad Integrum

Insurers have seen an increase in the number of Diminution claims in NI and ROI. Many Plaintiffs would argue that it is ‘inevitable’ that the value of a vehicle would depreciate because of a road traffic accident. Insurers and Defendant Lawyers will often be referred to a standard 5%-20% deduction as a result of a road traffic collision. In ROI a figure is often quoted of 10% of the total cost of repairs.

For Insurers, it’s important to note that the process of determining diminution in value is case-specific. The assessment of restitution ad integrum is not a one-size-fits-all solution. Insurers must evaluate each situation individually to ensure that the Plaintiff is properly compensated and not over-compensated.

Our office was recently instructed by one of our Irish Insurers to advise on a depreciation claim where their in-house assessors opined that the value of the damaged vehicle would not be affected due to minimal damage and the fact that all parts fitted were bolt on. They advised that Depreciation would usually only be considered when structural or semi structural repairs are being carried out and the file was passed to us to defend the proceedings once issued.

This was, we politely suggested, not quite the correct approach and we took immediate steps to advise on a fair settlement of the case to avoid any ensuing legal costs.

Justin McCauley of Emerald Automotive Assessors is a qualified Motor Engineer having achieved his qualifications from the IAEA and IMI and has worked in the insurance industry for 16 years.

We approached him for the purpose of this article and he had this to say;

“An often quoted argument is that “if two vehicles have similar mileage, age, model, make etc and are otherwise identical save that one was involved in a road traffic collision, any potential buyer would opt for the one without the adverse history. Notwithstanding that high quality repairs were carried out.”

This is not strictly true.

Of course, now more than ever the used car market is highly competitive, where buyers are often hesitant to purchase a car with a history of accidents, even if fully repaired, leading to a larger price difference between pre-accident and post-repair values.

There is undoubtedly an increase in depreciation claims where many modern vehicles have sophisticated technology, and so Plaintiffs will argue that even minor accidents can sometimes require extensive repairs, impacting the perceived value of the car.

A number of factors however can have an impact on the amount that a vehicle will have been reduced by.

type of vehicle,

its age,

mileage,

who repaired it and did they adhere to manufacturer methods

has repairs invalidated the vehicle’s warranty

What was the quality of repairs post repair

pre-accident condition,

the severity of damage sustained or

any other special attributes and qualities

There is no one size fits all. This growing trend of 10% of the repair costs is incorrect. Similarly, it is incorrect to say that it is always 2.5% -15%. It is incorrect to say that a vehicle over four years old will not qualify. It is fact specific and input from a qualified Motor Assessor is key.”

Conclusion: The Need for Expert Advice

Insurers should understand that the application of restitution ad integrum in car accident claims is not straightforward and varies based on the specifics of the case. Undoubtedly, as demonstrated in Payton v. Brooks, a Plaintiff should be compensated for any diminution in the value of their vehicle due to an accident, but the existence and extent of diminution is not straightforward.

To navigate these complex issues, it is vital to appoint a suitably qualified motor assessor to assess any diminution claim.

The motor assessor can consider the condition of the vehicle and the extent of the damage having regard to all the necessary factors. By understanding the intricacies of the law and the unique circumstances of the case, insurers can properly assess any claim for diminution and ensure fair settlement as early as possible.

Life is full of dangers and judicial prose…

Posted on 29 January 202530 January 2025 by Damian McGeady (Partner)

A Sideways Glance to the Court of Appeal decision in

Kandaurova

V

Circle K Energy Group Ltd

Brilliant.

The opening to Noonan J’s Court of Appeal judgment this week in the case of Kandaurova v Cirkle K Energy Group Ltd. was brilliantly effective, reminiscent of the vivid staccato style often associated with Lord Denning in his pomp. To Denning, the writing of judgments was an art form. And the beginning mattered:

I try to make my judgments live … I start my judgment, as it were, with a prologue – as the chorus does in one of Shakespeare’s plays – to introduce the story.

Professor James Raymond, former Professor of Rhetoric at the University of Alabama, maintained that the first page of a judgment is “prime real estate.” In a well-constructed judgment, “the front page says it all.”

Danger here

In Kandaurova, Noonan J opened as follows;

Life is full of dangers which may cause injury if not avoided. Small children develop by encountering and learning to avoid things that can be fallen off, bumped into, tripped over or knocked down. In the common law of occupiers’ liability, ordinary everyday dangers are described as “usual” and as such, do not attract liability

The reader is given a simple and direct introduction to the case. The direction of the wind is clear. People can be injured due to danger, but where it is a usual or common danger, there may not be a liability. In this case, a lady tripped on a kerb. It was not defective. The Court of Appeal held that she could not recover damages from the Occupier.

The Bluebell opening

There are other fine examples of opening paragraphs in Personal Injury cases. Denning’s ‘Bluebell opening’ is perhaps the most celebrated;

It happened on the 19th April, 1964. It was bluebell time in Kent, Mr. and Mrs. Hinz had been married some 10 years, and they had four children, all aged 9 and under. The youngest was one. Mrs. Minz was a remarkable woman. In addition to her own four, she was foster-mother to four other children. To add to it, she was two months pregnant with her fifth child.

On this day they drove out in a Bedford Dormobile van from Tonbridge to Canvey Island. They took all eight children with them. As they were coming back they turned into a lay by at Thurnham to have a picnic tea. The husband, Mr. Hinz, was at the back of the Dormobile making the tea. Mrs. Hinz had taken Stephanie, her third child, aged 3, across the road to pick bluebells on the opposite side. There came along a Jaguar car driven by Mr. Berry, out of control. A tyre had burst. The Jaguar rushed into this layby and crashed into Mr. Hinz and the children. Mr. Hinz was frightfully injured and died a little later. Nearly all the children were hurt. Blood was streaming from their heads. Mrs. Hinz, hearing the crash, turned round and saw this disaster. She ran across the road and did all she could. Her husband was beyond recall. But the children recovered.

Home Run

This blog has previously written of the Irish case of Kane v Kennedy and Budd J’s tremendously evocative :

The news of the death of Joe DiMaggio came while I was writing this judgment. His record streak in 1941, when he got a hit in fifty-six consecutive games, still stands. His grace at the plate and his defensive qualities at centre field, his leadership of the New York Yankees to victory in nine of the ten World Series in which he led them, and above all his gentlemanly conduct made him a legend in his own lifetime. I wonder what he would have made of the problems with which I have been confronted in resolving the conflicts of evidence presented by what followed the strike by Alice Dunne during the game of rounders played in the sports hall of a convent school in Glasnevin on the morning of Tuesday 21st May 1996.

Life and Death

One of the first Constitutional cases this reader encountered was the X Case (1992). This form Denham J:

This application for an injunction raises issues of the utmost seriousness affecting a girl of 14 years of age and her family. It concerns matters of life and death, and touches on the deepest aspects of human experience and the moral and legal norms of our Justice.

Short and Sweet

Lord Hoffmann’s opening to his judgment in the case Investors Compensation Scheme Ltd v West Bromwich Building Society could not have been in plainer language;

My Lords, I have had the advantage of reading in draft the speech prepared by my noble and learned friend, Lord Lloyd of Berwick. I agree with it, and for the reasons which he has given, I would allow the appeal.

Signal of Intent

Lord Wilberforce in Anns v Merton London Borough Council got straight to the point with:

In my opinion the time has come when we should say that the law ought to recognise our responsibility going beyond the present cases, a duty to behave conscientiously, responsibly and with humanity.

Lunar Law

For the property lawyers out there, what about I leave you with this from our Supreme Court and Higgins CJ in Vone Securities Ltd v. Cooke:

As stated by Mr. Justice Costello in his Judgment, at common law the ordinary primary meaning of month, when used in instruments such as leases, was and is lunar month. This meaning is taken to be intended by the parties to any such instrument unless that instrument read as a whole, or the surrounding contemporaneous circumstances, show that the other, or secondary meaning, of calendar month, was, in fact, intended. It will, no doubt, surprise many people to learn that a rule as archaic as this surely is and so far removed from the needs and uses of modern society should still be part of our law. Even in the days of Charles Dickens, the rule was probably sufficiently out of date to justify Mr. Bumble’s description of the law. Today, its continued existence as a rule of the common law is opposed to all common sense and indicates how much remains to be done by way of reform to bring the common law up to date.

You learn something new every day! Or should that be every 1/29^th of a lunar month (Approx. Maths is not my thing)

Case Study – Excessive Credit Hire Rates halved in Ireland with Basic Hire Rate Reports.

Posted on 28 January 202529 January 2025 by Ruaidhri Austin

Recent Success in Challenging Excessive Credit Hire Rates in Ireland

Last month, our firm reported recent success with a successful outcome at Letterkenny Courthouse, where the Court agreed with our arguments that the rate charged by a Credit Hire Organisation was excessive. We’re pleased to share another win for our Irish insurers in contesting inflated credit hire charges.

Case Summary

The Claimant was involved in a road traffic accident with the Defendant, and liability was accepted by the Defendant’s insurer. After the accident, the Claimant entered into a credit hire agreement with an Accident Management Company (AMC), which provided a replacement vehicle on a credit hire basis. The Claimant’s original vehicle was written off, and payment was made by our instructing insurers for the pre-accident value (PAV) of the vehicle.

Once the PAV had been settled, the credit hire period ended, and the Claimant’s representatives submitted an invoice to our instructing insurer for payment. The total amount claimed for the hire of the replacement vehicle over 76 days was £26,343.46 (STG). The Credit Hire Organisation later offered to accept £20,000 (STG) to settle the matter, and avoid Circuit Court costs in Dublin.

Initial Assessment by Lacey Solicitors

Our instructing insurers sought a preliminary opinion from Ruaidhrí Austin, Partner at Lacey Solicitors, given his dual qualifications and extensive experience in both Northern Ireland and the Republic of Ireland in handling credit hire claims. They specifically asked whether the reduced figure of £20,000 should be accepted and had two primary concerns:

Mitigation of Losses: Could it be argued that the Claimant failed to mitigate their losses by not using their comprehensive insurance policy? Under 34(2)(b) of the Civil Liability Act 1961. Claimants in Ireland have a statutory duty to mitigate their losses. While this argument is common in credit hire cases, we advised that at this early stage of the proceedings, it would be best to focus on other arguments.
Reasonableness of the Hire Rate: Was the daily rate charged for a replacement Range Rover reasonable? Given the specifics of the case, the hire period was appropriate, and the replacement vehicle was ‘like for like’. However, the insurer rightly questioned the reasonableness of the hire rate which seemed excessive.

Challenging the Credit Hire Rate

We outlined that the burden of proof lies in these cases lies with the Defendant to demonstrate that there was a more reasonable rate available. Prima facie, the Plaintiff is entitled to the rate claimed. It is for the Defendant to demonstrate a suitable alternative rate. To support this, our office commissioned a Basic Hire Rate (BHR) report from ‘BHR Assist’ to challenge the excessive charges.

The BHR report revealed that a comparable replacement vehicle could have been hired from a car hire company located just 10 miles from the Claimant’s home for a total of £10,876.55, a significant difference from the £26,343.46 claimed.

Settlement and Conclusion

We advised that our instructing insurers should offer £12,500.00 (STG) in settlement, which included the £10,876.55 for hire, plus additional costs for storage and recovery. The insurers successfully negotiated a settlement at this amount, avoiding formal court proceedings and saving substantial legal costs in the process.

Key Takeaways

While credit hire claims are relatively rare in the Republic of Ireland, they are becoming more frequent.
Claims handlers should aim to quickly recognise cases where Credit Hire is ongoing and take steps to ensure that repairs are authorised or payments raised in a timely fashion to avoid any significant delays.
When the daily hire rate appears excessive, it’s essential to challenge the charges with Basic Hire Rate evidence, as long as the Claimant is not relying on impecuniosity.

At Lacey Solicitors, we specialise in navigating the complexities of insurance law across both jurisdictions. Our team of experienced professionals is dedicated to providing clear, effective legal advice and representation to our insurance clients. Whether you’re dealing with credit hire claims, liability disputes, or policy interpretation, we understand the intricacies of insurance law and work tirelessly to achieve cost effective outcomes quickly. With a reputation for excellence and a deep understanding of the industry, our firm is committed to delivering trusted, reliable legal solutions in the ever-evolving world of insurance in Ireland.