1. Liability

(a)

If it is clear that the other party is entirely responsible for the accident, then the only outstanding matter is the question of the measure of the damage incurred. However, a Judge may hold that one or other of the parties may not be entirely responsible for the accident and may apportion liability for it between the two drivers. This can be anything from 50%/50% - where each party recovers 50% of their losses up to 90%/10% and so on.

(b)

Where there is some question on liability, it may be necessary to have the scene of the accident examined by an Engineer who will produce a map of the location and photographs. This is to assist the Judge in rendering a decision on liability.

2. Damages

Liability having been decided, the issue of the amount of damages arises. Typically, the following headings on damage arise:-

(a) Repairs

The car should be brought to a reputable garage who will prepare an estimate of the repair for the damage. The Insurer for the other driver will normally commission a Motor Assessor to view the vehicle and the damage and to agree whether the estimate provided by the garage is reasonable. If there is a dispute as to the reasonableness of the repair bill, then one should consider commissioning ones own Motor Assessor on the matter.

(b) Depreciation

Generally for cars up to five years old, the Insurers will allow depreciation at the rate of 10% of the repair cost of the car. With a current year registered car the Insurers, in certain circumstances, will allow up to 20%.

(c) Car Hire\Loss of Use

Typically, an Insurer will allow up to two weeks car hire to allow for the repair of the car or, in certain circumstances, its replacement. Strictly speaking, the car hire is only for the period of time it takes to have the garage carry out the repairs.

With older cars a particular problem arises. With the high cost of repairs, frequently Insurers deem older cars not economic to repair. The decision is entirely economic. Every second hand car has a book value. The Insurers value the car prior to the accident. The crashed car has a residual value called a scrap value. The Insurers have the option of discharging either the net loss, being the pre accident value less the scrap value, or the repair bill, whichever is the cheaper.

In such circumstances, one is only entitled to recover the net loss of the car and car hire for the period of time it takes to organise a new car. This period again should not exceed ten to fourteen days.