World Insurance Report
Liability, awards and settlements
7.2, road traffic accident, compensation
UK: a 38-year-old mother left wheelchair bound after a crash on the M1 motorway in 2002, won £5.5mn in compensation. The woman
was paralysed after a van knocked her car off the motorway. The High Court heard the driver’s insurers were paying her £2.3mn
compensation for her injuries but that sum did not include care costs. Yesterday, she was awarded £5.5m and an attempt to
have the sum reduced because she received benefits was rejected. Lawyers for the victim successfully fought off an attempt
to have her pay out reduced because she currently receives benefits from her local council. In an important ruling for those
who suffer personal injuries, Mr Justice Tomlinson ruled that it was unfair to expect claimants to rely on local authorities
for money when someone else’s negligence was to blame. Lawyers for the insurers of the man held liable for the victim’s injuries,
had sought to have the pay out reduced by £1mn as she receives £50,000 a year from Hertfordshire County Council to help pay
for her care. But Mr Justice Tomlinson said there was no guarantee that figure would remain the same in the future, and it
would unfairly tie the victim to Hertfordshire council for the rest of her life. The court was told that the victim, as a
result of the crash, was wheelchair-bound and unable to use her upper body.