Loophole in law sees Scottish man liable for thousands following death crash on old motorbike

[dandoolittle]

Just spotted this news story about a biker who didn't cancel his insurance. The new owner (who was banned) crashed the bike and ended up in a fridge!


http://www.motorbiketimes.com/news/...ng-death-crash-on-old-motorbike-$21384232.htm

I'm pretty sure something hasn't been reported properly though. I doubt insurers would pay out for a rider that isn't named on a policy etc

 

[itsatruestory]

Doesn't the insurance have like a kitty bag which we all contribute to when we take out a policy to cover like hit and run etc etc.. Surely the Yaris driver would be covered in the same way.

Also, the previous bike owner should of reported his bike sold to the Insurance company and the DVLA but thats not an excuse to force him to pay thousands of pounds for a third parties mistake.

 

[dandoolittle]

Doesn't the insurance have like a kitty bag which we all contribute to when we take out a policy to cover like hit and run etc etc.. Surely the Yaris driver would be covered in the same way.

Also, the previous bike owner should of reported his bike sold to the Insurance company and the DVLA but thats not an excuse to force him to pay thousands of pounds for a third parties mistake.

I see what you're saying but I know loads of people who sell a bike but leave it running so they get the NCB

 

[CBRHoonigan]

They are the biggest Criminals going!!

 

[dandoolittle]

They are the biggest Criminals going!!

I hear ya loud and clear

HOwever 95% of unpaid claims are down to the person not declaring something. It's the people who do do claim, tell lies etc that bang up the prices. The same as the younger drivers/riders etc

Doesn't matter if we like those facts or not, they are the facts.

Simply put - Be honest with your insurer because they will screw you, they're a business

 

[CBRHoonigan]

I hear ya loud and clear

HOwever 95% of unpaid claims are down to the person not declaring something. It's the people who do do claim, tell lies etc that bang up the prices. The same as the younger drivers/riders etc

Doesn't matter if we like those facts or not, they are the facts.

Simply put - Be honest with your insurer because they will screw you, they're a business

Oh i tottally agree i have mates with cars with stuff undeclared, but i declared all my mods glad i did otherwise when my old bike got ran over i would of lost thousands

 

[O8ride]

Took me a while to get my head round this.

First, because the guy did not cancel his insurance and the other guy did not insure it because he couldn't due to being banned, the insurance company was unaware that the bike was not the original owner's and the bike was still insured.

Second, the new rider was not named on any policy, and would have been unable to be, so allowing the guy to ride the bike on your insurance puts the original insurance in breach. So it would not pay out on third party, but the original insured can still be held liable. So he now has a lot of costs to pay out for the Toyota car, and possibly the rider's family may consider any element of the bike to be unroadworthy, thus shifting blame on to the seller and claiming further compensation for the guy's death.

Interesting lesson to learn.

Here's the kicker:

You're trying to sell your bike privately, your insurance covers only you, and each potential buyer wants to test ride it otherwise there is no deal. What do you do?

 

[RoninK6]

Can't open the article. Is this law the same for all of the U.K. or just Scotland, who happens to want to become their own country ???

 

[dandoolittle]

Can't open the article. Is this law the same for all of the U.K. or just Scotland, who happens to want to become their own country ???

Its a UK thing

 

[dandoolittle]

Here's the kicker:

You're trying to sell your bike privately, your insurance covers only you, and each potential buyer wants to test ride it otherwise there is no deal. What do you do?

I'm pretty sure something hasn't been reported properly.

I can ride anything i like on a third party basis as long as its got insurance from the owners but I cannot claim from the owners insurance policy if i bin it

 

[O8ride]

I'm pretty sure something hasn't been reported properly.

I can ride anything i like on a third party basis as long as its got insurance from the owners but I cannot claim from the owners insurance policy if i bin it

Dan, let's say you are selling, not buying, and someone unknown-to-you wants to test-ride what you are selling.

a) From your insurance background, what should people do to ensure they are safe, and then
b) from a practical standpoint, what do most people generally do?

And if these two are different,

c) what is the insurance companies' response if the buyer wrecks?

 

[dandoolittle]

Dan, let's say you are selling, not buying, and someone unknown-to-you wants to test-ride what you are selling.

a) From your insurance background, what should people do to ensure they are safe, and then
b) from a practical standpoint, what do most people generally do?

And if these two are different,

c) what is the insurance companies' response if the buyer wrecks?

I'm out of practice but I'll answer from memory

Both questions can be answered in one really


From your insurance background, what should people do to ensure they are safe, and then

Either get them

• Named on the policy
• Ask for proof of their own third party insurance and take a photo of cover note
• Take the cash upfront with your own policy of 'You bin it, you pay for it'

If you allow a driver/rider to drive without insurance (them saying they have it is not enough in court) then you can have points yourself. Or you can tell the police they stole the vehicle and deny knowledge. I have heard people doing just that.

I would personally take them as a pillion and not let anyone take my machine (even if for sale) out until I have the cash in my hand. You don't know if they may nick something that you can't see


I was riding with a guy who brought a Triumph. He hated the alarm system but he couldn't take it off. Triumph has some weird system that has a key type thing that goes into the ECU when the alarm is removed. The bike will then start due to this little plug/key.

He couldn't find this plug on sale anyway. He resorted to taking the same version of the bike out, took the key/plug from the demo and put it into his machine. Boom he disabled the alarm and the dealer knew nothing about it