A mother and daughter slip on a wet floor in a local shop. If the mother's claim is settled at £8,000 and her daughter's injury reserve is £5,000, what happens to the total reserve?

In this scenario, the total reserve is initially calculated by combining the amounts set aside for both the mother's and the daughter's claims. The mother's claim is settled at £8,000, and the daughter's injury reserve is £5,000, leading to a total initial reserve of £13,000 (£8,000 + £5,000).

However, when answering the question regarding what happens to the total reserve after the mother's claim has been settled and accounted for, it's essential to distinguish between the total reserve at the outset and the remaining reserve after settling the claims. Once the mother's claim is settled, the reserve allocated for her claim is effectively no longer needed in its entirety for the reserve calculation, as it reflects a settled claim, leaving only the daughter's reserve.

This means that the remaining total reserve will be the amount reserved for the daughter, which is £5,000. Thus, the total reserve is indeed reduced to £5,000, as the claim for the mother has been concluded, and no further financial implications for that portion are necessary in the context of reserves.