Holiday drivers could face crippling damages claims

Holidaymakers who injure a fellow British tourist while driving abroad may find themselves under-insured and personally liable for damages running into millions of pounds following a recent House of Lords ruling.

It follows the case of Giles Harding from London who was paralysed from the neck down in a car crash in Australia in 2002. The vehicle was being driven by his girlfriend, Tanya Wealands.

Miss Wealands’ insurance company argued that the case should be heard in Australia where the accident took place and where compensation payments tend to be about 30 per cent less than in Britain. It led to four years of legal argument but the matter has now been finally resolved with the House of Lords ruling that the matter should be dealt with according to English law.

It’s estimated that Mr Harding can now expect to get damages in the region of £5.5m, much higher than he would got in Australia.

Andrew Scott, head of the personal injury department at Andersons Solicitors in Nottingham, says the ruling is a great relief to British travellers injured abroad but it also has serious implications for the person causing the accident.

“This is because car hire insurance abroad may not cover the cost of damages awarded in British courts which are among the highest in the world.

“Many comprehensive motor insurance policies available in other countries limit their pay-outs to relatively low figures of between £250,000 and £500,000 because that is the maximum likely to be granted by their local courts. However, if an injury case is now heard in Britain as it can be following the House of Lords ruling then the victim could be awarded far more than that.

“It means the person who caused the accident would have to pay for the extra compensation themselves.”

Mr Scott urged holidaymakers hiring cars abroad to study the insurance policy offered and ask what the maximum pay-out would be in the event of an accident. “It may be possible to increase the cover by paying extra on the premium, but this varies in different countries so people need to check the policy carefully.”

Note to editors: For further information contact Andrew Scott on 0115 988 6700 AScott@andersonssolicitors.co.uk

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