Car insurance firm paid out on ‘invalid policy’

A driver who took out an car policy with Liberty Insurance which the company deemed invalid later because of non disclosure of previous offences was found guilty of not having insurance when he appeared before the district court last week.

John Connors, (25), from Newhall, Ladytown, Naas, Co Kildare, was one of two cars involved in a crash at Drumcar, Louth on April 4 2014. He was coming out of a driveway when he hit an oncoming car. Gardai arrived, but said that both parties were sorting the details out between themselves.

A couple of days later, the other driver reported to Gardai they were having problems with Connors and Gardai checked the insurance policy. Solicitor Conor MacGuill said two representatives from Liberty were in court and one of them confirmed that the policy was deemed to be cancelled from inception.

A second representative said Connors had notified them about the accident and appeared to have comprehensive cover. Liberty was asked to fix Connors’ vehicle which they did ‘in good faith’, but they later discovered there had been ‘non disclosure of material facts that was only brought to our attention much later and the policy was cancelled from inception’. Connors has previous convictions for driving offences.

The company representative said: ‘ There was a policy in force but it was defective because the information given at the time of it being taken out was incorrect. We were not told the truth about the policy being taken out’.

There is a claim for personal injuries and damage from the other driver, and Liberty said they will be settling it. Solicitor Conor MacGuill said the fact remains the claims are going to be paid and his client was insured at the time.

It was revealed Connors has previous convictions for having no insurance in 2012, for which he received a two year ban and a month later, he received a four year ban for refusing to give a sample and dangerous driving.

Judge Brennan heard how nine days before this accident, Connors had got his licence back after applying to the district court.

Mr MacGuill said his client works in the family business, paving driveways and his wife is expecting their first child. He said Connors was given a policy from Liberty and he was ‘properly driving on foot of it’ but now find himself prosecuted before the court when ‘ he believed he was properly on the road’.

The issue was that Liberty now says the policy shouldn’t have been issued in the first place, but they are paying out on it and no-one is at a loss, Mr MacGuill added.

He said: ‘ The real point in the case is that those who were injured are being compensated for physical and material damage they received’.

But Judge Brennan disagreed and said: ‘I’m satisfied on the basis of what I have heard that the insurance policy that did apply was no valid’.

He convicted Connors of having no insurance and careless driving. He imposed a €300 for careless driving and €100 for having no insurance. He disqualified him from driving for two years, but allowed him to appeal in his own bond of €100.