Westminster terror attack could lead to biggest car insurance payout ever for Enterprise rental firm – totalling tens of MILLIONS of pounds
COMPENSATION payouts to victims of the Westminster terror attack could be the largest in UK history, experts have predicted.
Claims could run into the tens of millions after five people were killed and more than 50 people injured when Khalid Masood mounted the Westminster Bridge kerb on March 22.
A Hyundai Tucson rented from Enterprise Rent-A-Car was used for the deadly rampage, leaving its insurer Zurich facing a potential unprecedented payout to those left with critical and life-changing injuries.
Victims of terror attacks are already able to claim through the Criminal Injuries Compensation Authority (CICA) but this scheme is capped meaning compensation can fall short of what could be recovered through insurers.
However, there’s no terrorism exclusion on car policies, and compulsory motor insurance laws mean the industry is legally obliged to cover those injured by uninsured drivers.
Recent changes to the Ogden Rate – the personal injury calculation – mean compensation payouts for life-changing injuries have never been higher.
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A 2012 personal injury payout worth £23million for a teen left paralysed after a fatal car crash is the current record but collectively the Westminster terror attack claims could top this.
One survivor, Francisco Lopes, 26, has already launched a compensation claim for counselling and rehab costs after suffering both physical and mental injury after the attack.
Graeme Trudgill, executive director of the British Insurance Brokers’ Association (BIBA), told The Sun Online: “UK compulsory motor insurance law does not allow a terrorism exclusion and states if there is a motor insurance policy in force then the insurer must deal with any third party claims as ‘Road Traffic Act Insurer’.
“Due to the number of people injured in this terrible incident and the increases some insurers are facing following the recent Ogden discount rate change, the potential does exist for this to be one of the highest car insurance claim seen in the UK.”
A Zurich spokesman added: “We do provide insurance for Enterprise and have a specialist team looking at how that policy is impacted by the terrible events in Westminster.
“It was a tragic event and presents many complex aspects as far as insurance is concerned.
“It is still too soon to talk about any specific elements of this though at the moment.”
Rented vans were also used in similar attacks at London Bridge and Finsbury Park mosque, prompting police to call for a review on hiring vehicles.
Met Police Commissioner Cressida Dick said short notice rentals may have to be clamped down on in a bid to stop terror attacks.
Borough Market businesses also face compensation claims after it was revealed the terror attack cost them £1.4million.
The bustling market near London Bridge was forced to shut up shop for 10 days after the terror attack that left eight dead but many are waiting to find out if insurers will pay out.