ICOB 7.6 Motor vehicle liability insurers: claims representatives and claims handling rules1

The Society must ensure that no member carries on motor vehicle liability insurance business at Lloyd's unless a claims representative has been appointed to act for that member in each EEA State other than the United Kingdom, with responsibility for handling and settling claims arising from an accident in the cases referred to in Article 1 of the Fourth Motor Insurance Directive.

1. (1)

   When a motor vehicle liability insurer for which the United Kingdom is the Home State1 appoints a claims representative, it must give the MIIC, and each other information centre, the claims representative's name, business address, telephone number and effective date of appointment within ten business days of that appointment being made.

2. (2)

   If the information at (1) changes in any material way, the motor vehicle liability insurer must be given the MIIC, and each other information centre, details of that change within ten business days of the change

A motor vehicle liability insurer for which the United Kingdom is the Home State1 must ensure that each claims representative is:

1. (1)

   resident or established in the EEA State for which it is appointed;

2. (2)

   capable of examining cases in the official language or languages of the EEA State of residence of the injured party;

3. (3)

   responsible for, and has sufficient delegated authority from the motor vehicle liability insurer for which it is appointed, to be able to:

   1. (a)

      handle and settle;

   2. (b)

      collect all information, and take all measures, reasonably necessary to negotiate a settlement of; and

   3. (c)

      represent, or arrange appropriate representation for, the motor vehicle liability insurer (whether in negotiations, in court or otherwise) in relation to;

   claims by an injured party1 arising from an accident occurring in an EEA State other than the EEA State of residence of the injured party, and caused by the use of a vehicle insured through an establishment, and normally based, in an EEA State other than the EEA State of residence of the injured party.1

   11

1. (1)

   Within three months of receipt of a claim for damages caused by a vehicle normally based in the United Kingdom1 from an injured party, or his representative, the motor vehicle liability insurer must (directly, or through a claims representative):

   1. (a)

      make a reasoned offer of settlement if liability is admitted and damages have been fully quantified; or

   2. (b)

      provide a reasoned reply to the points made in the injured party's claim if liability is denied, or not admitted, or the claim for damages has not been fully quantified.

2. (2)

   If liability is initially denied, or not admitted, within three months of any subsequent admission of liability, the motor vehicle liability insurer must (directly, or through a claims representative) make a reasoned offer of settlement, if, by that time, the relevant claim for damages has been fully quantified.

3. (3)

   If an injured party's claim for damages is not fully quantified when it is first made, within three months of the subsequent receipt of a fully quantified claim for damages, the motor vehicle liability insurer must (directly, or through a claims representative) make a reasoned offer of damages, if liability is admitted at that time.

4. (4)

   A claim for damages will be fully quantified under (1)(a), (2) or (3) when the injured party provides written evidence which substantiates or supports the amounts claimed.

1. (1)

   If the motor vehicle liability insurer, or its claims representative, does not comply with ICOB 7.6.8 R(1)(a), (2) or (3), the motor vehicle liability insurer must pay simple interest on any damages eventually paid, unless interest is awarded by any tribunal which determines the injured party's claim.

2. (2)

   If (1) applies, the amount of interest that the motor vehicle liability insurer must pay must be calculated as follows:

   1. (a)

      the interest calculation period begins three months after:

      1. (i)

         receipt of the claim for damages, if the motor vehicle liability insurer or its claims representative breaches ICOB 7.6.8 R(1)(a); or

      2. (ii)

         any subsequent admission of liability, if the motor vehicle liability insurer or its claims representative complies with ICOB 7.6.8 R(1)(a) but breaches ICOB 7.6.8 R(2); or

      3. (iii)

         the subsequent receipt of a fully quantified claim for damages, if the motor vehicle liability insurer or its claims representative complies with ICOB 7.6.8 R(1)(a) and (2) but breaches ICOB 7.6.8 R(3); and

   2. (b)

      the interest calculation period ends on the date when the motor vehicle liability insurer pays compensation to the injured party, or the injured party's authorised representative;

   3. (c)

      the interest rate to be applied throughout the period in (a) to (b) is the Bank of England's base rate (from time to time), plus four per cent.

A motor vehicle liability insurer will be taken to have received a claim, or a fully quantified claim, for damages when that claim, or fully quantified claim, for damages is delivered to the motor vehicle liability insurer, or a claims representative, by any person by any method of delivery which is lawful in the motor vehicle liability insurer's, or its claims representative's, respective State of residence or establishment.