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The volume of personal injury claims received by insurers leapt 72% between 2002 and 2010, according to a new ABI report.
The study ‘Tackling the Compensation Culture, published today, says action is needed to tackle the growth of such claims.
With Parliament reconvening today, it urges the government to press ahead with the changes to the civil litigation cost regime as outlined in the Legal Aid, Sentencing and Punishment of Offenders Bill.
The report’s publication ties in with the launch of ABI’s new ‘Consortium for Compensation Reform’
Argos owner Home Retail Group, ASDA, Ford and Whitbread plc have all signed up to the consortium, which is backing the ABI’s calls for implementation of the Jackson review reforms.
The consortium’s members also include public service risk managers association Alarm, the Association of Insurance Risk Managers in Industry and Commerce, BAA, the British Safety Council, the Centre for Justice, the EEF, the Forum of Insurance Lawyers, Lloyd’s Market Association, Lloyd’s and the Society for Motor Manufacturers and Traders.
ABI Director General Otto Thoresen said: “Our current civil litigation system is failing too many genuine claimants – the very people it should be protecting. Compensators, such as insurers, retailers and local authorities, are committed to paying genuine claimants as quickly as possible. But too often this happens despite the system, not because of it. People can get more money quicker by claiming directly from insurers, but ambulance chasing lawyers can still manipulate the system.
“The position is not irreversible. Other countries have taken action and we must do the same. Excessive legal costs must be reduced. The Legal Aid, Sentencing and Punishment of Offenders Bill provides a much-needed opportunity to mend our broken compensation system to ensure a better deal for genuine claimants, taxpayers, local authorities, the NHS and businesses alike”
Home Retail Group head of group insurance Matthew Davis said: “Managing our business costs is crucial to ensuring that we remain the UK’s leading home and general merchandise retailer. With over 33,000 employees and around 195 million customer transactions a year we take our health and safety responsibilities very seriously.
“But at the same time our compensation culture must be tackled. This is why we support the ABI’s call for reforms to help genuine claimants, deter fraud and reduce unnecessary costs.”
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Medico-Legal News Source : Insurance Times
