Insurers Promise to Challenge More Personal Injury Claims

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Cameron Asks UK Insurance Industry to Fight more Claims [16th Feb 2012]

The insurance industry has agreed that it will pass on to customers any savings which result from the cut in personal injury legal fees which is being proposed by the government. David Cameron has said to insurers that he wants to reduce the current £1200 fee for small claims and during a summit with insurance leaders, criticised the compensation culture which exists in the industry. In addition to ensuring the savings were passed on to customers, the insurers also said they would challenge more claims rather than immediately paying out. Small businesses have also been complaining in recent months that they are expected to go beyond minimum health and safety requirements to meet insurance standards, a problem which the insurance industry has said it will remedy by providing clearer guidelines for businesses. Whiplash claims were also on the summit agenda and Cameron has said this will also be tackled.

Compensation forms have been sent to more than 4,000 private investors in the brokerage company MF Global. The forms which were sent by the Financial Services Compensation Scheme will eventually be sent to all 10,000 customers of the now failed investment firm, however private investors are the first stage of the mailing program which will be completed by the end of the month. MF Global administrators have already made some interim payments to investors and it is expected that 600 investors could get as much as £7.6 million in total and a further 1300 will get a total of £12 million. The administrators KPMG have said that they do not yet know what the full cost of compensation will be and there is a possibility that UK advisors may be expected to cover the cost of the compensation.

It has emerged that victims of the riots in Croydon last summer are yet to receive their compensation. The Association of British Insurers has been urged by mayor Boris Johnson to make settlement of these claims as a top priority. Council Leader Mike Fisher has agreed that unsettled claims are affecting victims as they cannot rebuild their lives and he wrote a letter to the ABI last year to express this. However nothing has been done since. Nick Starling from the ABI has said that most cases have now been closed and just more complex cases involving larger commercial premises are still left to be dealt with. He points out these cases are more complex. Fisher has said he will write to the ABI again to point out that Croyden business owners feel let down by the insurance industry and that they need the compensation payments which they deserve.

14 men from Poland have won more than £250,000 in compensation from their employer, Darmar, a sub-contractor. The men had been doing construction work at the Uskmouth power station in Newport, however it seems they failed to get correct overtime payments. The GMB union which represented the men has pointed out that the fact their employer has now left the UK means they may not get the money owed to them. The union says that they will be raising the issue with the European parliament to see if the employers can be chased for the payment. It was discovered at a tribunal that the men did not receive leave payments for seven months and had their lodgings deducted from their pay each week. In addition their overtime was calculated correctly. However the sub-contractor was being paid the correct amount and was not passing the full pay on to the employees. The union have said that exploitation of migrant workers is commonplace in the construction industry.

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