Can an insurance company claim back a without prejudice payment?

Soldato
Joined
27 Dec 2009
Posts
10,555
Following being involved in an RTA I received a cheque from the other driver's insurance company a week or so back. This was attached to a letter saying that it was an interim payment in respect of the vehicle and made on a without prejudice basis. It also said “We reserve the right to recover any excess payment or deduct from another head of claim, should your claim fall below the above sum.” I contacted my solicitor who said this was all fine and to pay the cheque into my account.

Today I received another letter from the same person at the other driver's insurance company, advising that they are seeking to recover their outlay and want me to admit liability for the accident. I contacted my solicitor who said they will now allocate someone new to deal with it has become a disputed claim. He also said I should update my insurance company. However, when I called my insurer the guy I spoke to was adamant that once a without prejudice payment has been made they can't dispute liability and that they won't be able to claim back any money already paid to me. He assured me he's been doing the job for many years and knows what he is talking about.

Does anyone have any knowledge or experience of this sort of situation please?

For the record I do consider the other driver to be at fault. The (admittedly brief) description of the accident in this latest letter from his insurance company has clearly been crafted to avoid being an actual lie, whilst portraying the circumstances of the accident as being rather different to what actually occurred. Quite poor really as at the time he was very apologetic and effectively admitted it was his fault.
 
Soldato
OP
Joined
27 Dec 2009
Posts
10,555
@Mr Badger

What was the accident?
And how have they crafted their letter?

Rather than get into the specifics of the accident (already spent too much time on that with insurance companies, solicitors etc.) I'm more interested in sticking to the question of whether the other insurance company can ask for a payment already made "without prejudice" to later be returned. However, the accident took place on a congested road towards the end of the evening rush hour. The other driver admitted at the scene that they turned across my lane because another car had flashed them and that they didn't see me and didn't know I was there until the collision. The latest letter from their insurer now claims they were making a safe turn and proceeding correctly when I drove up at speed and crashed into them and so it was all my fault.
 
Soldato
Joined
6 Sep 2005
Posts
5,996
Location
Essex
Did you make clear the without prejudice offer also reserved the right to seek repayment? Not a lawyer but it’s possible that could make a difference.
 
Man of Honour
Joined
11 Dec 2002
Posts
10,808
Location
Darkest Norfolk
The offer "without prejudice" simply means they weren't admitting fault by paying you, it doesn't say anything to if they can claim that back or not, however it sounds like they covered that in other parts of the letter.

I'd leave your representation to deal with it - send the letters there way.
 
Soldato
OP
Joined
27 Dec 2009
Posts
10,555
The offer "without prejudice" simply means they weren't admitting fault by paying you, it doesn't say anything to if they can claim that back or not, however it sounds like they covered that in other parts of the letter.

I'd leave your representation to deal with it - send the letters there way.

Will do. Just seems strange that the guy I spoke to at my insurance company was so adamant that the without prejudice payment was a settlement there was no way they could then dispute liability and ask for the money back.
 
Can't type for toffee
Don
Joined
14 Jun 2004
Posts
17,338
Location
Newcastle U/T
Rather than get into the specifics of the accident (already spent too much time on that with insurance companies, solicitors etc.) I'm more interested in sticking to the question of whether the other insurance company can ask for a payment already made "without prejudice" to later be returned. However, the accident took place on a congested road towards the end of the evening rush hour. The other driver admitted at the scene that they turned across my lane because another car had flashed them and that they didn't see me and didn't know I was there until the collision. The latest letter from their insurer now claims they were making a safe turn and proceeding correctly when I drove up at speed and crashed into them and so it was all my fault.

ah so they pulled out on you without checking, any other witnesses? Dash cam?
I know the dash cam sounds stupid and that you'd have already gone down that route had you had it, but a lad at work was in an accident and completely forgot he had a dashcam.
 
Back
Top Bottom