Car on fire not covered

A third-party liability insurance policy did not cover an accident occurring while a car was being fixed on private premises, the Supreme Court has held, in Phoenix Engineering v UK Insurance [2010] UKSC 16. The court held that the damage was caused by alleged negligence in carrying out the repairs, not the prior use of the car as a means of transport. The car’s owner, Mr Holden, accidentally set fire to it while repairing it at the premises of his employer, Phoenix Engineering, causing £2m damage to Phoenix and its neighbour.