Motability Contracts & the deceased
If the person with the Motability contract is terminally ill and wants to get out of the contract, there is a thing called a settlement agreement – you have to have paid 50% of the total payment, then you request in writing for the agreement to be terminated. Motability gets the car back.
IF you haven’t yet paid 50% of the agreement you can ask Motability to generate a settlement figure which has to be paid in order to settle the agreement and return the car. If the 50% has been paid and you successfully settle and cancel the contract with Motability, they will write to the DLA Benefits administrator to get them to start sending the mobility element of the DLA to the disabled individual.