Letter from car insurer's solicitor

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finny

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My husband had a claim where he was at fault dating back to April 2019. The claim is ongoing and we believe there was a personal injuries element. Last we heard from the claim handler at the insurer was that she had rejected the settlement offer. We got a letter form the insurer's solicitor today out of "courtesy" informing us that legal proceedings have been taken against my husband on the matter and that they recommend he admits liability. I've two q's:

1. Can my husband be held personally liable for the accident even though he had valid insurance?
2. We have a current mortgage application which we will have to renew soon and hope to draw down in the next 4 months or so. Would this open legal case impact our application?\
3. Does my husband need personal legal advice on the matter?

Will speak to the insurer's solicitor for more details on this but I didn't realise this could come to my husband being personally sued....
Thanks
 
They are just saying that you should not deny liability as they reckon your husband was liable for the accident.

But the insurer will handle the court case and settle the claim.

I don't think it has any impact on your mortgage application.

Your husband does not need legal advice. The insurance company is used to managing these claims.

Brendan
 
Thanks Brendan. Spoke to a friend today who is an insurance solicitor today and she said the same.
 
Hi Finny,

I suppose the first thing is not to worry, as Brendan has said.

The legal proceedings will (with some very limited exceptions) always be against the driver and possibly the owner of the motor vehicle. The insurer solicitor is keeping you advised of the situation and just wants to be sure that you/driver are on board. There would not be much point in solicitor filing the Defence if you did not agree with it! It is very probable that you/driver will have to swear an Affidavit confirming that whatever if in the Defence, is true. Again, whilst in theory these can worry people, in practise they shouldn't.

Given that driver accepts that he is at fault, even if the case proceeds to Court, it is unlikely that he would be giving evidence or need attend at all.
 
Technically, your husband is personally liable for whatever is his fault just like other people in identical situations.
The point is that your husband's legal liability here is covered by a policy of motor insurance.
Put another way, he may be liable for the accident but will be indemnified by his motor insurers and have no personal financial liability.

I don't think that there is anything to worry about.
 
P.S. If the potential liability of OP's husband - although covered by the motor insurance policy - was some kind of material fact to be disclosed in relation to mortgage matters all that needs to be done is to get a letter from the insurers / insurer's solicitors confirming that OP's husband is fully indemnified.

This would establish that although he may have a potential liability it is the subject of a full indemnity.
Put another way, your husband might have a potential liability but with a value of zero as far as solvency goes.
 
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