My daughter's insurer is paying out after she hit a pedestrian - but the police said they would not pursue the matter?

Two years ago my daughter was involved in an accident with a pedestrian who walked out in front of her. The police attended the accident and confirmed in writing that they would not be pursuing the matter. The pedestrian suffered minor cuts and attended A&E but was released the same day. Recently the pedestrian instructed solicitors to make a claim for £1500 in respect of personal injuries. My daughters insurance company AXA refuted the claim until just before the court hearing and agreed to settle on the basis that legal costs in defending the claim would be greater. They are now asking my daughter to agree and accept she was at fault. This seems wrong to me as the police decided not to pursue matters and Axa agreed up to the point of settling that my daughter was not at fault. If my daughter agrees to AXA's request to accept liability it will go down as an at fault claim and affect her record. My question is can AXA do this? If they can it seems very unfair .

Asked on 12 December 2017 by peter russell

Answered by Tim Kelly
Hi Peter, In contract, yes then can do this, as you have subrogated your rights to them. Under the Financial Service and market act 2000 under PRIN www.handbook.fca.org.uk/handbook/PRIN/2/?view=chap...r
And ICOBS 8.3.3 They cannot act in conflict to your interest www.handbook.fca.org.uk/handbook/ICOBS/8/?view=cha...r

They are bound by regulations to stop them from doing so. The answer to the question is that insurer's choose to ignore the regulations as and when they see fit, which makes it a grey area.

In law, when ever you hit a pedestrian, it is always your fault under the RTA act 1988, and your insurer has to meet those obligations to third party claims, so they then would have to pay.

As you can see, it is complicated. But I would advise your daughter to insist that AXA's defends her stance.
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