The Berryman's associate rounds up her thoughts on credit hire

The field of credit hire is in a state of flux. Some insurers are dissatisfied with the operation of the General Terms of Agreement (GTA), perhaps demonstrated most notably by the withdrawal of major insurer, Axa Insurance, from the scheme.

Additionally, legal practitioners are faced with a Judiciary inconsistent in its approach to credit hire claims. Differing interpretation of the GTA and no clear indication as to the court's expectations over issues such as rate evidence and period disputes has led to an increase in disputed and litigated credit hire matters. Development of the GTA by its members is necessary to ensure that the escalating credit hire costs and difficulties which all parties face are resolved.

The introduction of an independent chair is the first step taken by the members of the GTA and time will only tell as to whether this development is a positive one. Furthermore, pursuing claims which raise issues within the ‘grey areas’ of credit hire case law to the Higher Courts for guidance is essential to clear up the inconsistency.

Sarah Cartlidge is an associate at Berrymans Lace Mawer LLP.