Legal Q&A: Delivery driver and bankrupt insurer woes…

Q Around two years, ago I was just minding my own business trundling along the high street on my Yamaha XJ600. I had just gone over a pedestrian crossing after letting a little old man walk over it.  Just after that, I indicated and then began to turn right into a side road as I needed to go to the post office.  It was at that point when a lunatic delivery company driver decided to overtake the HGV behind me, on a pedestrian crossing, and also try and overtake me. It would be fair to say the only thing he delivered that day was a broken right leg to me, and a trashed bike.

If I could have got up, I would have punched him. However, I couldn’t and laid there on the floor like a sad sack of potatoes. The old bill rocked up and, armed with the dashcam from the HGV, the delivery driver got done for dangerous driving and banned. Therefore, as far as my case was concerned, I thought it would be easy. However, the delivery driver and his insurer were idiots so after a year my solicitor issued Court proceedings against both of them, and we should be heading to Trial next soon, I hope. The fear I have now got is my solicitor has told me the delivery driver’s insurer has gone bankrupt. Does this mean I will not get paid? The insurer is Gefion.

A It’s not clear if you are going to Trial to deal with who is to blame for the accident, or only to decide how much your claim is for. However, on the blame front, I would be highly surprised if you did not win this 100% on liability. The delivery driver sounds like a right dipstick. Therefore, the following advice is on the basis the Trial is needed for the Judge to hear the evidence and then make an Order as to how much you get. As for actually getting the money after the judgment, you could seek it directly from the van driver, or his insurer, Gefion. The advantage of getting it directly from the van driver is you do not have to deal with the bankrupt insurer (read on) and you can leave it to the van driver to get the money back from his insurer, who is now bankrupt.

After all, he paid a premium to cover this risk. However, whilst you could do that, practically, I suspect the van driver may not have several thousand pounds to pay the judgment against him. Therefore, if you were my Client, I would get the judgment for you (on the basis you win your claim) and then direct the claim to the Financial Services Compensation Scheme (FSCS) in the event the van driver/Gefion do not have solicitors representing them. The FSCS’s website is very useful and states, ‘Gefion Insurance A/S (“Gefion”), a Denmark-based insurance company entered into insolvency proceedings on June 7, 2021.

It is no longer paying claims.’ However, it continues by stating, ‘FSCS declared the firm failed (in default) on June 7, 2021 and is stepping in to protect the majority of policies Gefion sold to individuals and small businesses in the UK.’ In other words, practically insofar as you are concerned, the FSCS will effectively pay out for any judgment that Gefion is liable to pay. Therefore, you will get your money if you win at trial, but it may take some time to get paid afterwards whilst it works its way through the claims system.