The Motor Vehicles (Compulsory Insurance) (Information Centre and Compensation Body) Regulations 2003

Response from the compensation body

12.—(1) Upon receipt of a claim for compensation under regulation 11, the compensation body shall immediately notify—

(a) the insurer of the vehicle the use of which is alleged to have caused the accident, or that insurer’s claims representative;

(b) the foreign compensation body in the EEA State in which that insurer’s establishment is situated; and

(c) if known, the person who is alleged to have caused the accident,

that it has received a claim from the injured party and that it will respond to that claim within two months from the date on which the claim was received.

(2) The compensation body shall respond to a claim for compensation within two months of receiving the claim.

(3) If the injured party satisfies the compensation body as to the matters specified in paragraph (4), the compensation body shall indemnify the injured party in respect of the loss and damage described in paragraph (4)(b).

(4) The matters referred to in paragraph (3) are—

(a) that a person whose liability for the use of the vehicle is insured by the insurer referred to in regulation 11(1)(c) is liable to the injured party in respect of the accident which is the subject of the claim, and

(b) the amount of loss and damage (including interest) that is properly recoverable in consequence of that accident by the injured party from that person under the laws applying in that part of the United Kingdom in which the injured party resided at the date of the accident.

(5) The compensation body shall cease forthwith to act in respect of a claim as soon as it becomes aware that—

(a) the insurer referred to in regulation 11(1)(c), or the claims representative of that insurer, has made a reasoned response to the claim, or

(b) the injured party has commenced legal proceedings against the insurer.