Track Day Insurance Claim

[V]

I thought this was interesting and wouldn’t mind Jasons thoughts.

The background is that there was an collision on a trackday. Car A went off and was stranded in the gravel trap. No real damage. Soon after, Car B went off at the same place and made contact with Car A. Nobody was hurt but both cars were damaged.

Driver of Car B then heard from his motor insurance company that they had received information of him being involved in an accident. Atter many phone calls they understood it was on a racetrack on a trackday.

After that they wanted to assess the damage on Car B for a pending claim. They didn't understand that driver of Car B wasn’t making a claim as he knew he couldn’t as it was a trackday. Driver refused to let them asses the car. Nothing to do with them, which they didn’t understand.

Speaking to insurance company a bit later they said they were still being chased for payment by the other insurance company.

Spent weeks trying to get insurance company to accept that road traffic laws do not apply to trackdays. They finally accepted that fact.

They then said that they would be cancelling the insurance policy as Car B driver had broken the terms and conditions of their policy. They claimed that a trackday would void the insurance policy. In the end they let the policy run its term.

Next, they tried to remove all the no claims from their record as they said a claim had been made. They also put on record that Car B driver had been in a accident, but its a no fault, no claim. This affected him taking out a new policy. Insurance company wouldn’t renew the insurance policy as they claimed Car B driver was too high a risk. This was after explaining that even if he did another trackday, he couldn’t claim anyway.

Later, letter received from Insurance company saying they still wanted Car B driver to pay for the 3rd party damages (to Car A). Insurance company had not paid out to the other insurers.

Finally, insurance company replies to the 3rd party to say they would not be paying as the Road Traffic Act does not apply to this incident and any future correspondence to go direct to the driver or his solicitor.

A few months passed, then Car B driver recieved a letter from solicitors acting on behalf of Car A's insurance company claiming payment for damages (just under £10k). They didn’t specify what the damages were for and that if there was no reply within two weeks that they would commence court proceedings.

Solicitors for Car B driver considered that the letter was poorly written and didn't comply with the CPR pre-action protocol.

Brother of Car B driver (trainee lawyer) writes a reply six months ago. Nothing heard since.

[Mustdriveslower]

What a nightmare! Now you know why I am bald! There is no common sense with insurance! I’d be very interested to know (by PM) which insurers these are, if you know of course. It’s my experience that they all take it in turns to be stupid at some point but there are some worthy candidates for the “dork insurer of the year award”.

This does not make sense. It is common knowledge that all claims are off on track, EXCEPT those involving wanton disregard or negligence. Someone going on to the track then turning around and driving the wrong way round would obviously be up for a law suite but not an insurance claim via their road insurance.

Again, track day insurance covers accidental damage and not liabilities to others, but is overridden by what ever the participant has signed! SO I think we should be looking at what is signed!

It is my understanding that only “valid and relevant claims” are what insurers are required to glean, and this does NOT include track days, but I could be wrong. If the above scenario was correct, then every time you or someone else, bumped any car you owned or were using, or was at work in charge of, you would have to log and report.

Now under the requirement for all policy holders to give “material disclosure of facts” technically you should tell your insurer every bump you have ever had, and then if it has any bearing on your insurance, they take it into note or if not, they don’t, BUT I know of no insurer I deal with who would participate in this scenario, unless the facts were wrong! “Hit whilst parked” (just forgot to say it was in the kitty litter!)

It is my understanding that the standard disclaimer we all sign at a track day, should apply and stop this happening. But, I will look and actually read the next track day form I sign (!) to make sure. I am reasonably sure that there is a universal disclaimer for damage claims to and from other participants as well as the organiser.

I would guess that this case you mention above is either an opportunist claim by A against B, or an over zealous insurer that is a jobsworth. I would hope that our current insurer scheme partner and those we have used previously would simply say “no cover” go away you are on your own. And probably not very politely either.

You also mentioned removing ALL of the no claims bonus, which is odd as there is a normal 2-year step back. Tell me, the companies that were involved, did they have any Broker presence. I.e. was a Broker claims department involved? We, as a course, and like most other Brokers, filter all claims communication and nip in the bud any that is obviously incorrect or wrong. Also, one individual policyholder yelling against an insurer, does not equal a Broker with a large book of business (in the hundreds if not millions of premium) yelling the same thing. Sorry for that commercial break I thought I’d just blow our trumpet there!

If you want to PM me with any confidential names of insurers etc I might be able to comment further, as there are some numpties……

[V]

In short - you are liable for the repair bill if you hit someone on a trackday

UPDATE:
Not good news.
The driver of car B lost his case.
The judge said you couldn't rely on the disclaimer.
Pay the damage in full and almost full costs = £21k.

So it seems any waiver is worthless?
I am not too sure how this can be?
Nor what any trackday hosts will or can do to resolve this?
Or who will want to do a trackday knowing if you have an accident you'll be liable to pay full costs - especially if you hit something expensive and knowing you wont get insurance to cover what ever you hit?!?!?

How on earth can this be right?

[Mustdriveslower]

I would like to read the court records on this one. It really does take the cake. I have been witness to many track accidents and to my knowledge I have never known of a succesful litigation. Maybe Mr Rossi had better know about this! If you are in a position to PM me with actual details I would be obliged. If anyone has track day cover can they look and see what it says about third party damage. Own damage is covered but what does the word say about third party whether it be another track dayer or the armco barrier!

I don't understand why the court saw it the way shown. I simply don't. Anyone see anything on the internet on this case as it must put the dampers (excuse the pun) on track days!

[V]

I'll see what's available.

[V]

http://www.moris.co.uk/News/Third_Pa...y_Insurance044

So is there any protection? Well tale comfort from this. In a test ruling at Wolverhampton County Court. His Honour Judge Mitchell concluded that if someone crashes into you on a trackday, even if it is clearly their fault - then tough! The judgement followed a case where a driver under tuition collided with a track day participant who then sued for damages. In essence the judge's ruling is that anyone participating on a trackday is aware of the potential risks involved and has a choice of not driving on to the circuit. (Source: Circuitdriver.com, April 2007).

[Martin F]

So am I reading this right, post 3 and 6 are indicating that two judgements are setting different precidents (sp?)?

[V]

Yes, seems so. Two judges with different views.