Insurance pays out

Insurance pays out

I sold my GSXR750 to a local chap. He seemed like a decent fella, paid the cash and off he wandered. Fast forward four weeks and I got a bell off my insurance company.

Turns out he had got drunk and then crashed the bike into an oncoming car. I understand no one is seriously hurt but the car is a write off and matey boy has been stuck on by the police.

As he hadn’t insured the bike my insurer reckons they will have to pay out because I had forgotten to cancel my policy. Even worse, they also reckon they can get back their money from me. I went mental as I have done nothing wrong and told them to poke off. What do you think?

Answer

Firstly I think matey boy is a proper scumbag. Accidents can and do happen. However getting drunk and riding around without insurance is socially unacceptable.

As you didn’t cancel your policy your insurer will have to pay out. Long story short, if they have issued a certificate of insurance that hasn’t been cancelled, legally they have to cover the liability.

However, unfortunately as you have breached the terms of the policy i.e. because you didn’t cancel it once you sold the bike your insurer can come after you for their outlay.

If this happens your only option would be to go after matey boy for your costs. Hopefully, the rider has a house or job etc. so he can pay you back if you take him to court. If not, there could be a possibility of you winning your claim and never actually getting paid.

Andrew Prendergast

Motorcycle Monthly November 2017

Posted by Andrew Prendergast. Last modified: March 23, 2018 at 4:28 pm

Andrew has been riding motorcycles since he was 10 years old and currently rides a ZZR1400 as his daily commuter whether it is sunny or snowing. In addition, he is currently restoring an old Honda CB750 K1. Andrew practices across all areas of motorcycle law, with his practice involving both civil claims and motoring defence work.

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