Who pays for accident damage?

[Chris M]

Does it work like on the roads, where the party at fault (or their insurers) pay for the damage they cause? e.g. if TOC A's train SPADS and hits TOC's B's train, does TOC A pay for the damage to both trains? Or is it rosco that foots the bill?
If a train derails due to badly maintained track, does Network Rail pay for the train to be repaired?
Do FOCs pay NR when their train rips up half a mile of track, or is this covered in track access charges?

I originally asked this question in the now-locked Waterloo derailment thread, but it is intended as general question not related to any incident specifically.

 

[Clip]

Insurance companies

 

[Clarence Yard]

It is all dealt with via the respective parties individual insurance arrangements. There is usually a bun fight about liability and the extent of the damage but then the various insurers get down to some serious negotiation.

There is no mechanism in the TAA that deals with insurance claims.

 

[LAX54]

In a simplified form: If TOC 'A' delays TOC 'A' they pay for the delays, if TOC 'A' delays B, C and D then NR pick up the tab, same with freight.

I think it was at the time of privatisation that it was deemed that if each TOC / FOC had to pay all the delays caused, they would go bust within a year !

 

[GB]

I think (at least as far as FOCs) that there is also a maximum cap on the amount they have to pay for a given type of incident.

For example, the derailment at Ely....if it were deemed the fault of the FOC and it cost £5million to fix, the cap for the FOC may well be half that. Thats just a generalisation though, I don't know the exact figures or exact clauses.

 

[Crossover]

I believe the heritage operators have a cap for compensation.

I seem to recall reading here that the Great Heck disaster was covered by the motor insurer of the driver who put their car down the embankment and that it was one of the largest motor insurance claims made?

 

[43096]

It is all dealt with via the respective parties individual insurance arrangements. There is usually a bun fight about liability and the extent of the damage but then the various insurers get down to some serious negotiation.



There is no mechanism in the TAA that deals with insurance claims.

The hire of a 67 to GBRf for the sleeper whilst 73969 is fixed is being paid for by VTEC/their insurers (collision was at Craigentinny). Likewise the hire of the 68s+stock to Anglia to cover 170204 was covered by Network Rail / their insurance.

 

[PermitToTravel]

I believe the heritage operators have a cap for compensation.

I seem to recall reading here that the Great Heck disaster was covered by the motor insurer of the driver who put their car down the embankment and that it was one of the largest motor insurance claims made?

Since overtaken by the tragic Agnes Collier crash https://www.theguardian.com/world/2012/nov/19/23m-compensation-crash-agnes-collier

 

[hwl]

Since overtaken by the tragic Agnes Collier crash https://www.theguardian.com/world/2012/nov/19/23m-compensation-crash-agnes-collier

The initial payments for great heck came in at £22m after 18months which was much reported but the final cost after 7 years wasn't well reported at circa £52m with MunichRe covering £33m and another reinsurer £19m. The insurance industry usually rounds the cost to Munich Re's early estimate of £50m for illustraive purposes. So Collier isn't the highest.

 

[JoeGJ1984]

What if a tram has an accident with another road vehicle? Will their insurance pay up if the tram driver was deemed to be at fault (as would another road vehicle)? Would trams be required to have insurance the same as road vehicles under (I think) the Road Traffic Act?

 

[GB]

What if a tram has an accident with another road vehicle? Will their insurance pay up if the tram driver was deemed to be at fault (as would another road vehicle)? Would trams be required to have insurance the same as road vehicles under (I think) the Road Traffic Act?

They will have public liability insurance via its operating company.

 

[PermitToTravel]

The initial payments for great heck came in at £22m after 18months which was much reported but the final cost after 7 years wasn't well reported at circa £52m with MunichRe covering £33m and another reinsurer £19m. The insurance industry usually rounds the cost to Munich Re's early estimate of £50m for illustraive purposes. So Collier isn't the highest.

That's interesting, thank you