ALLIANZ INSURANCE PRESS STATEMENT – RSA RULING
5 October 2012
Yesterday Mr Justice Cooke said that the practice of producing invoices to prove claims for cost of repair has worked perfectly well until you get the "sort of contrivances we have been looking at here". This comment is far from a ringing endorsement, despite his judgment on the legal principles, and insurers should reflect on that view.
If this judgement stands, insurers tempted to seek recovery based upon diminution of value, rather than the traditional repair cost, will have to produce evidence other than a repair invoice - perhaps an engineers report. It will result in challenge, dispute, additional cost and delayed recovery. That cannot be good for the premium paying public, the industry, or the customer waiting to have their claim settled.
We have 21 days to apply to the Court of Appeal for permission to appeal and we are actively reviewing that option with our legal team.
Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz SE Group, the largest property and casualty insurer worldwide.