The index says this forum's the right one for insurance, so fingers crossed...

I have a serious problem with a car insurance claim (in NZ). Last year another vehicle collided with my car, which ended up being a total loss. Fortunately no-one was injured, and my insurer paid out promptly, minus excess. That's where the smooth sailing ended.

I wasn't at fault, but for some reason the third party have flatly refused to accept responsibility, although on what grounds I have no idea. About two months after the claim, my insurer became uncommunicative - I presumed that it was just taking a long time to sort out.

Then, early this week, I received notice from the Ministry of Justice that my insurer made a claim in my name with the Disputes Tribunal late last year - that I wasn't informed about - and that the hearing date is in a couple of weeks' time. Horrifyingly, my insurer filed it saying that they have abandoned subrogation rights, so presumably they won't even be attending court, and I'd be having to argue against a lawyer from the third party's insurer.

In other words, my insurer has started a Disputes Tribunal action without my knowledge or consent and left me twisting in the wind. I have no idea why there's a stalemate between them and the third party's insurer. I've tried contacting my insurer, but cannot get a response either from the person in charge of my claim or the person who filed the Disputes Tribunal claim.

I've never been involved in a situation like this before - I have a 20+ year no-claim driving record - so although it seems very wrong, it could be standard practice for all I know.

Has anyone even heard of something like this happening before? Does anyone know if it's even legal?

(I don't want to reveal the name of my insurer at the moment. If there's interest, I'll try to keep this thread updated until the situation is resolved one way or another, and name and shame at the end.)