Aviva case could save the industry millions
Aviva is suing Warwickshire Police over car storage charges in a potential landmark case that could save the industry millions.
The dispute surrounds a Vauxhall Corsa that was involved in an accident in May 2011 in which the driver and passenger were injured.
The car was put ‘on hold’ in police storage for 77 days, during which time police were investigating a possible offence of dangerous driving, according to a High Court writ.
The garage storing the car refused to release it unless Aviva’s agent paid storage charges of £20 a day.
But Aviva says the police was not entitled to charge for storage and is seeking repayment of the storage charges and damages of £500 for conversion.
Insurance Times understands that other insurers have to go through similar storage procedure with police forces. Should Aviva win the case, a precedent could be set, whereby insurers reclaim storage costs.
Aviva declined to comment. A Warwickshire Police spokesman said: “We can confirm that we have received a writ, but we cannot comment as the matter is currently before the court.”
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