Helphire, one of the numerous companies in the UK that provides rental vehicles to motorists involved in accidents, is going to the European Court of Justice to seek a ruling that will help them to recover more than £5.3 million from the Motor Insurers’ Bureau (MIB).
MIB have refused to pay the rental car costs in respect of a number of claims relating to instances where Helphires’ clients have used other drivers’ insurance details to fraudulently obtain rental vehicles. If they are successful, this ruling could have far reaching impacts for other accident vehicle rental companies who have suffered in the same way.
The Motor Insurance Bureau, (MIB) was established in 1946 to compensate the victims of negligent uninsured and untraced motorists. Every insurer, underwriting compulsory motor insurance is obliged, by virtue of the Road Traffic Act 1988, to be a member of MIB and to contribute to its funding.
The matter of insurance companies paying out for car contract hire rental to a third party following accidents caused by their customer has been an issue for many years and numerous rental companies have struggled financially to maintain services as insurance companies delay payment or challenge the fees/contracts through court actions.
Helphire generally has to wait an average of eight months to recover its debts and in some cases, settlement has been outstanding for over 18 months.
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