Sobrany v UAB Transtira [28.01.16]

Following a road traffic accident (RTA), the Claimant hired two replacement cars under credit hire agreements, taking advantage of free insurance. Total hire costs amounted to around £142,000. At first instance the District Judge held that there were two insurance policies in place. He found that the claim for the second period of hire was invalid, limiting recovery to around £9,000. The Court of Appeal considered previous judgments, including W v Veolia Environmental Services (UK) PLC [2011]. It held that it was within the District Judge’s discretion to allow the two policies point to be run. However, it was not right to confine the Claimant to a claim only in respect of the first period. A particular clause in the insurance policy should not be construed as meaning that there was no cover in respect of the second hire period. The Claimant was awarded £101,382 plus interest.