Lloyd's Insurance Law Reporter
ARMSTEAD V ROYAL & SUN ALLIANCE INSURANCE CO LTD
[2022] EWCA Civ 497, Court of Appeal, Lord Justice Bean, Lord Justice Singh and Lord Justice Dingemans, 28 April 2022
Insurance (motor vehicle) – Credit hire – Hired replacement vehicle damaged by driver negligence – Whether driver’s insurers liable for damages for loss of use
In May 2015 A’s vehicle was damaged in an accident that was not her fault. Pending repairs, she hired a Mini from Helphire Ltd in November 2015. The contract provided that A was to return the hire vehicle in the same condition as it was at the start of the hire. By clause 16 she was to “on demand pay to [Helphire] an amount equal to the daily rental rate … in respect of damages for loss of use for each calendar day ... whether the hire vehicle is unavailable to [Helphire] for hire because … the hire vehicle has been damaged”.