REIS Trackday Insurance Statement regarding third party liability
The following is a verbatim copy of a press release issued by REIS Insurance regarding the recent track day case has caused all sorts of issues for motorsport claims. Insurance companies are getting together to see what can be done.
A conclusion is that all disclaimers will be tightened to prevent competitor to competitor claims for property damage. However, this will not apply to personal injury claims as you cannot contract out of that.Cheap Track Day Insurance? CLICK HERE
The press release from Chaucer is for full circulation, so please feel free to send to colleagues.
REIS are a leading track day* (see definition below) insurance broker who arranges motorsport and track day insurance policies through Chaucer Insurance.
Chaucer Insurance has been underwriting specialist motorsport insurance for 15 years.REIS offer an accidental damage policy to cover participants for damage to their own vehicles. The track day fraternity generally accepts that all participants pay for damage sustained to their own vehicles, regardless of the circumstances and every participant signs a disclaimer intended to put this principle into effect. However, we have had our concerns regarding the validity of these disclaimers and their ability to protect individual track day participants from suing each other in the event of damage to their vehicles.
In agreement with our policyholder following significant damage to his vehicle through no fault of his own, we pursued a recovery from a driver who had collided with our insured’s stationary vehicle on the grass verge just off the track. At the court hearing last week it was held by the judge that the disclaimer did not protect the track day participant who caused damage to a vehicle that Chaucer Insurance covered under a policy arranged through REIS. The participant was ordered to pay for the damage he had caused to the other vehicle, as a result of his negligence which was established by the court through CCTV evidence.
In this instance, Chaucer Insurance will not be pursuing the award issued to them by the county court. Last weeks court case does not set a precedent for any future actions as the claim was held in a court of 1st Instance. Now that it has been established that current disclaimers are not protecting track day participants sufficiently, we have taken legal advice which recommends that the following clause to be inserted into track day disclaimers:
‘It is a condition of your participation of the activity, or activities, in which you intend to take part that in the event of accident, loss or damage occurring during such activity or activities you will not pursue any claim for damages against any other participant (save in respect of injury or death)’
Under the provisions of the Unfair Contract Terms Act 1977 it is not possible to exclude potential liability for injury or death. If this clause is inserted into all disclaimers and every participant signs the document prior to commencing the activity then it is the view of our legal opinion that a court would enforce the clause.
Please be assured that REIS and Chaucer remain committed to a vibrant and exciting track day market. Implementation of the above clause should ensure that it remains so.
*A track day is a non-competitive event that allows an individual to drive their vehicle outside of the Road Traffic Act requirements. There is no racing; lap timing; time, speed or distance targets; or winners and losers.
In agreement with our policyholder following significant damage to his vehicle through no fault of his own, we pursued a recovery from a driver who had collided with our insured’s stationary vehicle on the grass verge just off the track. At the court hearing last week it was held by the judge that the disclaimer did not protect the track day participant who caused damage to a vehicle that Chaucer Insurance covered under a policy arranged through REIS. The participant was ordered to pay for the damage he had caused to the other vehicle, as a result of his negligence which was established by the court through CCTV evidence.
In this instance, Chaucer Insurance will not be pursuing the award issued to them by the county court. Last weeks court case does not set a precedent for any future actions as the claim was held in a court of 1st Instance. Now that it has been established that current disclaimers are not protecting track day participants sufficiently, we have taken legal advice which recommends that the following clause to be inserted into track day disclaimers:
‘It is a condition of your participation of the activity, or activities, in which you intend to take part that in the event of accident, loss or damage occurring during such activity or activities you will not pursue any claim for damages against any other participant (save in respect of injury or death)’
Under the provisions of the Unfair Contract Terms Act 1977 it is not possible to exclude potential liability for injury or death. If this clause is inserted into all disclaimers and every participant signs the document prior to commencing the activity then it is the view of our legal opinion that a court would enforce the clause.
Please be assured that REIS and Chaucer remain committed to a vibrant and exciting track day market. Implementation of the above clause should ensure that it remains so.
*A track day is a non-competitive event that allows an individual to drive their vehicle outside of the Road Traffic Act requirements. There is no racing; lap timing; time, speed or distance targets; or winners and losers.
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By way of "post script".....
This is what MORIS.co.uk say under their FAQ's
Am I covered for third party damage?
No. You have no coverage for any liability to third parties, whether personal injury/death or property. Damage is your problem following a test ruling at Wolverhampton County Court. His Honour Judge Mitchell concluded that if someone crashes into you on a trackday, even if it is clearly their fault - then tough! The judgement followed a case where a driver under tuition collided with a track day participant who then sued for damages. In essence the judge's ruling is that anyone participating on a trackday is aware of the potential risks involved and has a choice of not driving on to the circuit
By way of "post script".....
This is what MORIS.co.uk say under their FAQ's
Am I covered for third party damage?
No. You have no coverage for any liability to third parties, whether personal injury/death or property. Damage is your problem following a test ruling at Wolverhampton County Court. His Honour Judge Mitchell concluded that if someone crashes into you on a trackday, even if it is clearly their fault - then tough! The judgement followed a case where a driver under tuition collided with a track day participant who then sued for damages. In essence the judge's ruling is that anyone participating on a trackday is aware of the potential risks involved and has a choice of not driving on to the circuit
Further Reading on Trackday Third Party Liability:
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