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Thursday 18th of October 2018
October 5, 2007

R&SA faces £1m legal fees on DAS claim

by Gill Montia

Story link: R&SA faces £1m legal fees on DAS claim

R&SA faces £1m legal fees on DAS claim

Royal & Sun Alliance (R&SA) could face substantial legal costs with regard to a long-running case with DAS, the legal expenses insurance company, which has been fighting the insurer to recover £610 for a car hire claim.

In December 2006, DAS won the case in the High Court and an order was issued for R&SA to pay the claim plus legal costs.

That decision was reviewed in the Court of Appeal when three judges unanimously rejected all arguments put forward by R&SA.

The dispute centred on an uninsured loss recover (ULR) claim in which liability was not contested.

In March 2004 a DAS policyholder’s stationary car was hit from behind and the policyholder subsequently used a hire car through DAS, which primarily uses Helphire for replacement vehicles following a non-fault accident.

DAS provides replacement vehicles as an insured benefit, which is unusual in the ULR business, and R&SA challenged DAS’s car hire supplier arrangement despite the fact that Helphire charged £29.07 per day, which in 2004 was equivalent to the Association of British Insurers’ General Terms of Agreement rate.

R&SA sought details of DAS’s confidential commercial arrangements with replacement vehicle providers and the judges in the High Court and the Court of Appeal agreed that this was not relevant.

DAS estimates that the total costs of the case could be close to £1 million.


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