VHI undertaking
VHI Rules ('the rules') govern the terms on which benefit to subscribers is payable. Paragraph 6 of the rules contains the exclusions from cover, one of which is expenses which are recoverable from a third party. Such expenses are typically the medical and hospital expenses recoverable in road traffic accident proceedings. The rules provide, however, that in such cases, benefit to the subscriber will be paid in the normal way subject to appropriate undertakings being forthcoming (rule 6.15)
Following lengthy discussions with representatives of the VHI ('the board'), the Society has agreed to recommend to practitioners that with effect from 1 September 1997, the board will pay a fee of 拢120 plus VAT (currently totaling 拢145.20) in consideration of a solicitor undertaking with the board for the recovery in RTA litigation of monies advanced by the board to a member pursuant to rule 6.15 of the rules.
The solicitor's obligation is two-fold. Firstly, he must account to the board for all expenses actually recovered in the litigation and, secondly, he must provide the board with a clear explanation as to how that sum was arrived at and how it is computed. The board will accept such an explanation and the solicitor's obligation will then be at an end.
A solicitor must, of course, obtain irrevocable authority from his client to the giving of the undertaking, and to the furnishing of the information.