Insurer has 21 days to decide
Allianz is considering appealing yesterday’s High Court decision that saw RSA win a dispute over how the firm used its car repair arrangements to charge add-on costs to other insurers.
Provident and Allianz went to the High Court to appeal a judgment that approved RSA’s use of its repairer to add costs. However, Mr Justice Cooke dismissed the case. The two insurers may still turn to the Court of Appeal, and have 21 days to submit an appeal.
An Allianz spokesman said: “Yesterday, Mr Justice Cooke said that the practice of producing invoices to prove claims for cost of repair has worked perfectly well until you get the ‘sort of contrivances we have been looking at here’.
“This comment is far from a ringing endorsement, despite his judgment on the legal principles, and insurers should reflect on that view.
“If this judgment stands, insurers tempted to seek recovery based on diminution of value, rather than the traditional repair cost, will have to produce evidence other than a repair invoice - perhaps an engineers report. It will result in challenge, dispute, additional cost and delayed recovery. That cannot be good for the premium-paying public, the industry, or the customer waiting to have their claim settled.
“We have 21 days to apply to the Court of Appeal for permission to appeal, and we are actively reviewing that option with our legal team.”