Uninsured driver agrees settlement and pays but other party comes back later with injury claim

I had a car accident which was my fault, but I was driving somebody else's car as my car was in the garage getting repaired. As I had fully comprehensive insurance I thought I was automatically covered to drive another vehicle, but to my horror this doesn't seem to be the case. I got in touch with the people who I had crashed into and explained the situation and offering a cash settlement for the damage to their car and loss of earnings. They agreed and come up with a figure that they would be happy with so I paid them the money and they signed a disclaimer stating that the amount paid was the full and final payment and that they and there insurers would not make any more claims against me. To my surprise I have now received a solicitor's letters stating that they want compensation for whiplash. Am I in my rights to refuse because they have waived there rights to claim any more money from me with this disclaimer or will I have to pay again?

Unfortunately, I think you may have some difficulties here as if the injury is genuine, the claimant would have agreed a settlement without any legal advice.  Thus a court may well allow the claim to proceed.

Ultimately, any successful claim would have to be paid by the insurers of your friend's vehicle or otherwise the MIB but they would then look to you to repay whatever they had paid out including the Claimant's legal fees.

It would be best if you and your friend contacted his insurers and provided a copy of the agreement.  If you suspect that the Claimant was not in fact injured as no mention of this was made when the agreement was signed and the money paid, then make this very clear.

If you would like one of our panel solicitors to help you, please let us know although there would be a small fixed charge.

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