Sheffield Credit Hire The What Why How And Who 10 May 2022 Please wait for the session to commence at 1100 Bernard Thornton FCII Chartered Insurance Practitioner The I nsurance Institute of ID: 1001746
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1. The Insurance Institute of SheffieldCredit Hire – The What? Why? How? And Who? 10 May 2022Please wait for the session to commence at 11.00 Bernard Thornton FCIIChartered Insurance Practitioner
2. The Insurance Institute of SheffieldCredit Hire – The What? Why? How? And Who? 10 May 2022Bernard Thornton FCIIChartered Insurance Practitioner
3. Learning ObjectivesAt the end of this event, the delegate will be able to identify and understand:The background and development of the credit hire marketImportant test cases which have steered its operation The ABI General Terms of Agreement and how it works in practiceThe approach to replacement vehicles by different playersIdeas for client communication
4. What is Credit Hire?‘a means of providing a like-for-like replacement vehicle to an innocent victim of an RTA, with the least possible inconvenience and cost’
5. Who are the Participants?
6. How Does It Work?CHC ‘underwrites’ the riskCredit Hire Agreement in name of ‘Hiree’Hiree’s obligations:-No misrepresentationNo fraudCo-operation with recovery efforts
7. What are the Criteria?LiabilityNeedImpecuniosityUtilisation
8. Credit Hire vs Courtesy Vehicles
9. Reasons for Cost DifferentialBad debtCompromise settlementsConcessions for early settlementsLitigation costsUninsured TPAdditional insurance premiumsUnrecoverable damage costsSettlement delays‘Free’ upgradesAdmin costsCollection & delivery
10. What is the ABI GTA?‘The General Terms of Agreement for Insurers and Credit Hire Companies sets the standards for the credit hire industry, ensuring smoother processes and more productive relationships’.-GTA Website
11. How Much?VEHICLE TYPEEXAMPLECH RATE PER WEEKTYPICAL ‘SPOT’ HIRE S1Vauxhall Corsa£262.15£166.40S5Nissan Qashqai£426.93£316.00P4BMW 320£821.38£349.93PV4Ford Transit SWB£404.11£231.00B5125cc Motor Cycle£296.80£195.00CS4Mitsubishi Shogun 7£731.99£511.00
12. The ABI General Terms of AgreementWebsite: https://www.gtacredithire.com
13. Who are the GTA Signatories?
14. Why Does Credit Hire Exist?
15. The Good, the Bad & The Ugly
16. Who is the Celebrity Credit Hire Claimant
17. WINNER!
18. The UglyBent v Highways & Utilities Construction Ltd (2011)Costly stand-offsEye-watering costsWho pays?
19. The BadScramble for ownership>9 different approachesLittle thought for claimant’s best interestsClaimant innocent but confused!Poor service
20. The GoodNon-standard vehicleLateral thinkingMinimum disruptionCo-operationEveryone happy!
21. Harries v Baguley (2019)Liability dispute£400,000 hire charges over 3 yearsMitigation attempted but refused
22. Who Regulates?No legal regulationMost CHCs have other regulatory controls, e.g. FCACredit Hire OrganisationFull members (CHCs)Associate Members (mainly law firms)CMA Investigation 2014
23. The Credit Hire OrganisationWebsite:https://thecho.co.uk
24. What are the Topical Issues?The Covid-19 EffectThe Supply ChainCivil Liability ActGreater Co-operation?
25. Comments & Questions