Auto Indemnity becomes first credit hire firm to gain ABI approval

ACCIDENT management company Auto Indemnity has become the first of the traditional nationwide credit hire companies to be approved by the Association of British Insurers. The move comes amid concern over the future of the credit hire industry as companies continue to grapple with the fallout from the recent House of Lords ruling in the Dimond v Lovell case.

With charges for hire cars central to the case, Auto Indemnity said becoming ABI compliant removed the uncertainty concerning rental rates because they were fixed and agreed in advance, thereby ensuring prompt claims settlement by the third party insurer.

The company believes the initiative is the start of accident management becoming regulated and chief executive Adrian Palmer said Auto Indemnity would continue to be instrumental in moving the industry forward in 'a fair and professional' manner through discussion with the ABI'.

An ABI spokesman said: 'The ABI is now keen to extend this new initiative as widely as possible and welcomes Auto Indemnity's involvement as an important player in the industry.'