I had a car accident in a supermarket car park on the 8/4. The other driver's vehicle was from a company's fleet. We exchanged details and I contacted my insurance company on the same day to lodge a claim. I have fully comprehensive insurance. 9/5 - I received a letter from the driver's insurance company, stating their intention to claim. I called them on the same day informing them of my insurance company details and claim number and stating that they need to deal directly with my insurance company. 14/7 - I received another letter from the same insurance company demanding payment of 14 days to settle the claim with their client, or to contact them if the claim is to go through my insurance company. Again I called the insurance company and again reiterated they needed to contact my insurance company to follow up their claim. 1/9 - I'm served legal papers by the third party insurance company chasing their claims costs plus legal costs incurred! I called the other insurance company to establish that they had received the total payment of costs from my insurance on the 29/8, however, they were also chasing the legal costs as well. The legal costs being the late payment by my insurance company regarding their terms of payment! They then tell me that I need to contact my insurance company to arrange that the legal costs are to be paid to them! Although when I check the legal documents, there is no breakdown of what the legal costs relate to? I contacted my insurance company the same day they requested the legal papers be emailed to them a.s.a.p and they will decide if they pay the legal costs or not. I was informed by my insurance company that they had a dispute with the other insurance company's claim. I told them I was very concerned as the legal papers were against my name. How would this affect my credit status in the future? They told me not to worry as this kind of practice is a regular occurrence in the industry and they would deal with the problem. I have also contacted online a law firm and the Insurance Law Service for additional advice. I did contact Financial Ombudsman Service, who advised to contact the Insurance Law Service as well as ASIC. My question is...is this sort of practice ethical? I feel I'm being used as the pawn in a dispute between the insurance companies in regards to legal costs, which I was not aware of and certainly not responsible for? I am worried that the victim is me and concerned about the legal ramifications against me. What are my legal rights? It has effected me emotionally and has compromised my caring support role to my three disabled children as I am worried about the outcome. Can you help and explain, as I'm totally confused about the whole process?