A lawyer has warned fleet managers of the potential risks of accepting a replacement car from the at-fault party in the event of a collision.

The warning follows a recent case of an at-fault driver handing an information card to the potential claimant in a bid to avoid expensive and protracted dealings with a credit hire company.

The card gave details of the driver's employer and offered to assist with vehicle repairs and arrange a replacement vehicle free of charge.

The claimant rejected the offer and at a subsequent hearing was told he had acted unreasonably. Damages were reduced as a result.

A judge has commended the scheme which, if properly formulated, could offer fleets an effective way of avoiding credit hire claims loss.

But a leading lawyer says there are risks associated with such a scheme, with vehicle suitability and condition being the main health and safety considerations.

"This is quite a significant case and is likely to be appealed further,” said Paul Davies, partner and head of Corclaim – a division of Harvey Ingram LLP solicitors and member of car fleet operators’ association ACFO.

He asks if an employee is involved in a no-fault accident and the company hires a replacement vehicle, will those costs be recovered if the third party offers a company car and should the employee accept the offer or follow the company’s own procedures?

“If a company simply takes a hire car from a third party, it cannot vouch for the safety of the vehicle. If that vehicle was defective it could be faced with claims under Work Equipment Regulations and Corporate Manslaughter Legislation.

“The fact that the car was provided by a third party would not remove the company's health and safety responsibilities and this may provide a good reason for not taking up offers from third parties involved in accidents,” added Mr Davies.