SAHIN V HAVARD AND ANOTHER

[2016] EWCA Civ 1202, Court of Appeal, Lord Justice Longmore, Lord Justice Kitchin and Lord Justice Floyd, 30 November 2016

Insurance (motor) - Claimant injured by uninsured, untraced driver - Claim against hirer for causing or permitting uninsured use - Whether insurers liable to indemnify hirer - Road Traffic Act 1988, sections 143, 145, 148 and 151

In January 2008 S's car was damaged by a vehicle being driven by X, who was not traced. The other vehicle belonged to LCHLL, which had hired it to H. LCHLL's policy covered itself and and any person driving with its permission, and H was driving with LCHLL's permission. However, X was driving only with H's permission and so he was not covered by the policy. S obtained a judgment against H for breach of statutory duty for causing or permitting the uninsured use of the vehicle contrary to section 143 of the Road Traffic Act 1988, and he sought to enforce the judgment against the insurers under section 151 whereby, in respect of a third-party claim arising out of a liability required to be insured, insurers are liable for the use of the vehicle by any person as if that person was insured. The insurers denied liability on the ground that the liability to be covered by a policy, under section 145 of the 1988 Act, was only for use of the vehicle: all that H had done was to cause or permit use, and that did not constitute use.