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Daily Insurance Industry News
Saturday 19th of April 2014
August 27, 2008

Helphire takes MIB to European Court

by Gill Montia

Story link: Helphire takes MIB to European Court

Helphire, the firm that provides rental vehicles to motorists involved in accidents, is seeking a ruling from the European Court of Justice to recover more than £5.3 million from the Motor Insurers’ Bureau (MIB).

The cost of Helphire’s services is paid for by insurance companies but the MIB, which compensates the victims of uninsured drivers, is apparently refusing to pay-up in respect of a number of current and historic claims.

The claims involve instances of Helphire clients fraudulently obtaining a rental vehicle by using another driver’s insurance details.

Helphire also says it is being forced to raise £45 million of new funding to offset high borrowing levels brought about by insurance companies delaying payment.

The firm has to wait an average of eight months to recover its debts and in some cases settlement has been outstanding for over 18 months.

In addition, Helphire is in the process of tracking down the author of an email that has made a number of allegations about the company and its staff.

Both clients and business partners of Helphire have received copies of the document, which is thought to be the work of an ex-employee.

 

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