Uninsured Drivers and ‘Proportionate Damages’

Most people know that when someone is injured in an accident caused by an uninsured driver, compensation is still available.



However, when an insured person has given an uninsured person permission to use their vehicle, what is the position?



The law states that in such circumstances, the insurer can seek to recover any sums it has to pay out from any person who ‘caused or permitted the use of the vehicle which gave rise to the liability’.



Following a recent case, the position appears to be that the insurer can claim what is ‘proportionate…on the basis of the circumstances of the case’.



The practical effect of the judgment is that the position is far from clear: what ‘proportionate in the circumstances’ might mean is debatable. What is certain is that the ruling creates ambiguity in this area, which will remain unresolved until there are more decisions that clarify the position, or until the law itself is amended to add clarity.