On Jan. 27, 2020, an alleged collision among three vehicles in Sheffield – a BMW insured by Esure Insurance, a VW Golf, and a taxi – resulted in seven claims from the occupants.
While Esure’s (now former) customer accepted fault for the accident, Esure had concerns the car crash was staged. The insurer asked Sheffield Taxi Licensing Authority (TLA) whether the taxi driver had reported the collision and contacted law firm Horwich Farrelly (HF) to highlight this as a case of concern. Engineering evidence soon showed that the BMW had sustained significant fire damage to its engine, rendering it undriveable – and the accident, impossible.
Before HF could launch a claim, the driver of the VW Golf issued proceedings. Esure brought a counterclaim against all three drivers involved for exemplary damages, with HF producing evidence to strengthen Esure’s claim that the collision had been staged.
Admitting defeat, the taxi driver provided a witness statement saying his claim was dishonest and the collision had never occurred. He paid Esure £12,500 in damages and costs and had his license revoked by Sheffield TLA.
Judgment was also entered against Esure’s ex-customer (figure to be determined) and the VW Golf driver. Including legal costs, Esure saved £175,000.
