Retailers Hit Out Against Compensation Culture [5th Sep 2011]
A woman from Crynant in South Wales has been offered compensation and a new washing machine after her old one exploded just moments after her son walked past it. The Hoover-Candy machine is one of eight others which have suffered the same fate in recent months and could be among hundreds which have been reported by engineers. Anna Ewers has described how she heard a loud boom from the laundry room and went in to discover the machine in pieces and spread around the room. She points out that if one of the pieces had hit her son it could have killed him. The matter has been investigated by consumer group Which? who have said they know of eight other cases both in the UK and in Germany. The manufacturers say that the fault has been identified and fixed. The Association of British Insurers (ABI) has been joined by retailers and business groups in their fight against the "compensation culture" they say is endemic in the UK. Argos, ASDA, Ford and Whitbread are among those who are behind a report by the ABI which highlights how the claims industry is failing their customers. The study says that spurious claims and excessive legal costs are making it harder for genuine claimants to get what they deserve. It is also pointed out that personal injury claims rose by 72% in the last eight years and that £2.7 million is paid to lawyers through motor insurance premiums each day. The ABI have also said that when the compensation rules were changed in Ireland, the cost of insurance premiums fell by 16%. The ABI is asking for a ban on referral fees which are paid by claims firms to insurance companies for the details of accident victims. Otto Thoresen from the ABI has said that the current system is failing those who need it the most and many genuine claims are delayed because of the litigation system. A former BBC sports commentator has received a compensation payment of £2,000 after his car was damaged by pothole in Coventry. Hamilton Bland took his local council to court after they refused to compensate him for the damage caused to his car by the potholes around the city. The council had warned Mr Bland that if he pursued the case he could be left with a bill for thousands in damages. Mr Bland's car is a Mercedes and the rims of three of his wheels were so badly damaged they would need to be replaced completely at a cost of £2,000, however the council deny it was their fault. Despite the warnings from the council he took them to court and said that he felt it was right to take the risk. He hopes that the fact he has won his case could leave the door open for other motorists in a similar position. The cut off date for the banks to clear the backlog of PPI claims has now passed and the HSBC has admitted they failed to reach their target. They have however, contacted all customers and told them if their claim has been accepted or rejected, but offers are yet to be sent in some cases. These final letters are expected to be sent this week. Barclays, Co-operative, Egg, Lloyds and RBS are also thought to have reached the deadline and the Financial Services Authority have said that 97% of claims have been dealt with. Claims received between August 1 and September 30 must be dealt with and offers made within 12 weeks and after this date they will be processed in eight weeks. The former prime Minister of Iceland Geir Haarde has gone on trial this week over failings which led to the collapse of Icesave. The collapse of the bank impacted on thousands of UK savers and led to a dispute regarding compensation which still has not been resolved. Mr Haarde has called the process a farce and wants it thrown out of court. Many Icelandic people regard Mr Haarde as a scapegoat while some believe that the accountability of the government is essential. It has been argued that little was done to prevent the financial collapse of the country, while Mr Haarde says that allowing banks to go under was the best course of action and avoidied the problems now faced by Greece and Ireland. |
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