'Million-to-one' accident could leave £50m claim

The insurance claim over the Selby train crash will be the largest ever payout for a motor accident in the UK. The total processed by Gary Hart's insurers could reach £50 million.

When Hart's Land Rover ploughed down the embankment off the M62 early in the morning of 28 February, a tragic "million-to-one" chain of events followed.

The front of his vehicle came to rest on the East Coast Main Line. Seconds later the Great North Eastern Railway 4.45am Newcastle to King's Cross express, carrying 147 passengers, thundered into it.

The front set of wheels on the GNER was derailed and the train pitched to the right but stayed upright for 500 metres.

However, it hit a set of points to a siding further down the line and lurched to the right into the path of an oncoming Freightliner, pulling 16 wagons laden with 1,632 tonnes of coal.

The drivers of the goods train saw the GNER express hurtling towards them. Stephen Dunn, 39, who died in the accident, applied the brakes for seven seconds, but the trains collided head-on at an estimated combined speed of 180mph - one of the highest recorded in a crash in Britain.

The express's driver compartment was destroyed on impact as the next carriage, the First Class compartment, M, twisted in a earpiercing grind of metal, then it was thrown into a field. The next two jack-knifed and the fourth spun round 180 degrees. Inside, bodies and luggage were flung around.

Belgian insurance company Fortis provided Hart with an unlimited liability third party fire and theft policy. Whichever way today's verdict had gone, Fortis had braced itself to pay swiftly.

The huge financial mess left in the wake of the disaster will involve compensation for the relatives of the 10 victims, injured survivors - 76 were taken to hospital - GNER, Freightliner and Railtrack.

It is unclear how much money the families of the dead will receive for their loss, although it could reach £1 million for each victim. Estelle Kirby, spokeswoman for Fortis, said: "We are not aware of a benchmark figure for each of the victims but each will be dealt with on an individual basis."

She said payments will cover possessions lost in the crash, pain and suffering, future loss of earnings and the future cost of care for those needing it.

"We will not know the true cost of people's injuries for some years to come," the spokeswoman added. "We will have to see the long term effects of these injuries and the care they need."

The claims process has already begun with some of those involved receiving interim payments for loss of earnings and possessions destroyed in the crash.

However, the main bulk of the claim will be made up of losses from the rail companies involved.

Railtrack will top the list. The company was charged with undertaking the massive clear-up operation following the crash. It took dozens of men, and the use of three 60ft cranes, to take away the wreckage. Part of the railway embankment that was damaged by the express had to be rebuilt and a stretch of line about half-a-mile in length had to be replaced completely-The line was not reopened until two weeks after the disaster.

Railtrack also accommodated some of the villagers of Great Heck in hotels while the recovery operation was taking place, in addition to offering them counselling.

Railtrack spokeswoman Sue Nelson would not reveal the size of the company's estimated claim, but said: "Railtrack incurred substantial damage and business interruption-and is currently pursuing recovery of these costs from Gary Hart's motor insurers. There is an awful lot that needs to be considered, not least of which was the actual recovery."

She added that Railtrack had helped villagers affected by the crash approach their own insurers.

GNER is expected to claim for its train. The driver's compartment was obliterated and the first two coaches were so wrecked in the impact they fused together. The remaining nine coaches were damaged as they derailed.

The only part of the express that was not damaged was the electric 225 locomotive pushing it from behind. Ironically, Engine E91023, was the same involved in the Hatfield crash, in October last year in which four people died.

GNER may also pursue a claim for loss of business. For the two weeks the line was closed, services to and from the North were severely disrupted as passengers had to use a replacement bus service between Doncaster and York.

One Class 66 diesel locomotive, belonging to Freightliner, was destroyed in the crash, as were eight coal wagons. A spokesman for Freightliner said: "The cost of the locomotive is £1.5 million. The cost of each wagon is £600,000. Another seven have been sent for repair, so the costs are still unknown, and one was undamaged." The company is not claiming for loss of business.

Hart's legal costs were also paid by the insurance company. Mrs Kirby said: "We thought it important to get the best possible representation for our client, especially considering the unique nature of the circumstances and the stress he was going through at this time."

Fortis, with assets of about £250billion, will only have to pay the first £1.5 million of the claim. The remainder will be borne largely by German reinsurance giant Munich Re.