Mandate and Authority To Act

A. You have been deprived of the use of Your vehicle as a result of an accident which has been caused by the negligence of a third party.

B. You wish to hire a replacement vehicle and We have agreed to hire to You a replacement vehicle (the ‘Hire Vehicle’) on the terms set out in a Rental Agreement (referred to as ‘the RA’). This Mandate forms part of the RA.


  1. You have requested, and We have agreed to hire to You, the Hire Vehicle described in the RA upon the terms set out in the RA/Mandate, because Your own vehicle is unroadworthy or, in need of repair due to a road traffic accident (‘the Accident’) which You assert was the fault of a third party (referred to as ‘the Third Party’).
  2. We will be entitled to payment for the applicable hire charge and related charges agreed in the RA, the total of which will be set out in the hire invoice issued when the hire vehicle is returned to us (‘the Hire Charges’).
  3. You and We acknowledge that, as at the date of this hire the hire charge is unknown because the period of the loss of use of your car is yet to be determined. The hire period will be from the start date set out in the RA to the date the hire vehicle is returned to us (‘the Hire Period’). An invoice for the cost of the hire will be issued after the vehicle is returned. You will be advised of the daily rental charge for the vehicle at the outset.
  1. If your vehicle is business registered you must in any event pay us the GST amount on the hire car charges invoice. You authorise payment by any credit/debit card the details of which you have provided to us.
  1. We will use our best endeavours, as your recovery agent, to recover the Hire Charges from the negligent Third Party or their insurer (the ‘TPI’). In order to allow Us to recover the Hire Costs from the Third Party or the TPI (as applicable), You appoint Us as Your agent and representative with the authority to recover the Hire Charges from the Third Party or the TPI that We reasonably consider are likely to be recoverable from the Third Party or the TPI. This appointment includes authority to recover the Hire Charges by legal proceedings if necessary which will be issued in your name as plaintiff/applicant (referred to as ‘Your Claim’).

    You acknowledge that We may appoint and give instructions to legal advisers on Your behalf in respect of Your Claim. Should we decide to instruct Legal advisers to recover the Hire Charges You agree to assist, and provide Us or the appointed legal advisors (as applicable) with all co-operation reasonably required in connection with Your Claim, which may include You providing statements and documents and appearing in court as a witness.

    We will meet Your reasonable out-of-pocket expenses in complying with this clause.

  1. If the Hire Charges are recovered from the Third Party or the TPI We reserve the right to accept this payment in satisfaction of the hire car charges invoice. Upon acceptance the balance due on the invoice, if any, will be waived and you will have no further liability to us for the Hire Charges
    We may, at any time, immediately terminate this Mandate if, in Our reasonable opinion:
    1. You commit a material breach of this Mandate or the Rental Agreement which is not rectified within 30 days’ notification by Us, including where You:
      1. materially delay or hold up the timely recovery of the Hire Costs from the Third Party or the TPI, including by failing to provide Us with any documents reasonably requested by Us;
      2.  have intentionally, recklessly or negligently misled Us when providing information about the Accident;
    2. You make any admission of liability in respect to the Accident; or,
    3. You purport to release, by signing a form of release or otherwise, the Third Party or the TPI from any responsibility in respect of the Accident.
      If this Mandate is terminated you must pay us the hire car charges.
  1. You must promptly notify Us if You become aware of, or receive, any information that indicates that any insurance company has decided that Your vehicle is a ‘total loss’ or ‘write-off’.
  1. You authorise Us, or Our legal advisers, to:
    1. act on Your behalf in respect of the recovery of the Hire Costs including, if necessary, Your Claim;
    2. obtain all documents, reports and other material that might be requested by Our legal advisers in respect of Your Claim;
    3. receive any cheque in settlement or payment of Your Claim and, regardless of the payee, the same can be set off against any outstanding amounts or accounts owed or incurred by You to Us, or otherwise incurred by Us in respect of any reasonable action taken to recover Your Claim (but We must account to You for any surplus, if applicable);
    4. share Your personal details with third parties, strictly on a need-to-know basis, solely in connection with Your Claim. Unless you advise us otherwise we may use such information for surveys and the provision of follow up services relating to your accident.
  2. You declare that:
    1. You are the owner of a vehicle that was damaged in an Accident in which You were not at fault.
    2. You require a Hire Vehicle for the following reasons:
      • Work commitments
      • Family commitments
      • Travel To From Work
    3. You expect to be reimbursed by the Third Party or the TPI for the damage suffered by Your vehicle.


We understand how upsetting being involved in a motor vehicle accident can be. Contact Compass today and one of our friendly staff will help with any questions you may have.