ARMSTEAD V ROYAL & SUN ALLIANCE INSURANCE CO LTD

Walsall County Court, Recorder John Benson QC, 13 April 2021

Insurance (motor) – Bailment – Claimant’s hire car damaged in collision – Claimant liable under hiring agreement for full cost of hire – Whether insurers of negligent driver liable for cost of hire

A’s vehicle was damaged in a motor accident and while it was undergoing repair A hired a Mini on credit hire from Helphire Ltd at a daily rate of £145.30. Clause 16 of the lease provided that A would continue to pay the daily hire even though the vehicle was unavailable due to damage. The Mini was damaged in an accident caused by the negligence of G. Repairs took 12 days. A claimed from G’s motor insurers, Royal & Sun Alliance Insurance Co Ltd, repair costs of £1,990.65 and sums due to Helphire totalling £1,743.60.