Why does the insurance company have to pay this?
This was in the news a while ago:
"When Bryan Drysdale elected to commit suicide, the chef parked his car on the tracks at Ufton Nervet near Reading. A train hit it and seven died with more than 100 passengers injured. As Drysdale’s insurance had lapsed his claim was handled by the Motor Insurers’ Bureau meaning the estimated £50m of claims from victims will be passed onto us motorists".
The insurance company is not paying it – the MIB are. It was an uninsured crash on a road so they have to pay it out of the funds they have which come from all insurers in the UK.
The article is correct in that the insurers get their money from policyholders in premiums.
This is why scumbag uninsured drivers cost us law abiding insured people £30 to £50 a year per policy.
July 17th, 2010 at 11:40 am
you can guarantee it will
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July 17th, 2010 at 12:22 pm
coz we will end up paying it anyway
if not the insurance industry then the tax payer will have to foot the bill
your car is normally only insured to cover up to £75000 any way so even had it been a accident we sill would of paid
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my head
July 17th, 2010 at 1:03 pm
If a driver is uninsured, third party losses caused by his actions are covered by the MIB. The MIB will attempt to recover their losses from Drydale’s estate, but once that’s been exhausted, the rest comes from a levy on everyone’s insurance. That’s how the system works sunshine. The alternative would be for the taxpayer to stump up.
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July 17th, 2010 at 1:44 pm
The insurance company is not paying it – the MIB are. It was an uninsured crash on a road so they have to pay it out of the funds they have which come from all insurers in the UK.
The article is correct in that the insurers get their money from policyholders in premiums.
This is why scumbag uninsured drivers cost us law abiding insured people £30 to £50 a year per policy.
References :