The UK's leading insurer, Norwich Union, has welcomed an announcement from the Government that they are considering overhauling Britain's compensation system.
The UK's leading insurer, Norwich Union, has welcomed an announcement from the Government that they are considering overhauling Britain's compensation system.
Today's decision by Lord Falconer to address problems within the current legal system and to target the associated issues that have lead to Britain developing a so-called 'have a go' culture will be greeted favourably by many.
Unrealistic expectations amongst claimants fuelled by a 'non-win, no-fee' system which encourages anyone to pursue a claim for anything and everything has lead for calls from many commentators for change. The banning of advertising by accident management companies in NHS hospitals and the regulation of such firms are two areas that will rightly come under scrutiny by a new action group that will be created by the Ministerial Steering Group.
Norwich Union's director of technical claims, Dominic Clayden, said: "This announcement is an important step in the necessary modernisation of our system of compensation and we are particularly pleased to see that the Government has recognised the importance of rehabilitation, risk management and the need to review current small track limits.
"We believe it is not just about compensating people quickly and fairly it’s also about addressing those behaviours that created an unsustainable system and the ‘have a go culture’ in the first place."
Clayden continued: "We anticipate that a more efficient legal framework will provide a stable environment for those who provide compensation. Consequently not only will we see claims settled faster but customers and businesses will benefit from more predictable and sustainable premiums."
Norwich Union has championed several changes to the existing system, specifically:
- Prescribing service levels for settling claims to ensure people are helped more quickly
- Ensure the system is seen to be transparent as regards both damages and costs
- Setting realistic time limitations to encourage early notification and discourage spurious claims which clog up the system and are to the detriment of genuine claimants
- Raise the existing 'fast track' claims limit significantly
- Changing the law to ensure the wrongdoer has first and unfettered opportunity to accept responsibility and agree the process by which compensation will be valued
- Introduce penalties for those parties who delay the lifecycle of a claim beyond prescribed and reasonable time limits.
Norwich Union has been a key contributor to the continuing debate around the compensation culture and participated in a range of Government consultations and workshops. The insurer hopes to continue its involvement in this debate and has stated its willingness to assist the Governments proposed action group.
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For further information, please contact:
David Ross at Norwich Union on 08703 66 68 65 or 07786 526350.
Notes to editors
- Norwich Union is the UK's largest insurer with a market share of around 14 per cent
- With a focus on insurance for individuals and small businesses, Norwich Union insures:
- one in five households
- one in seven motor vehicles
- more than 800,000 businesses
- Norwich Union products are available through a variety of distribution channels including brokers, corporate partners such as banks and building societies and Norwich Union Direct.
- Norwich Union’s news releases and a selection of images are available on the Aviva internet press centre at www.aviva.com/media.
- An ISDN facility is available for studio quality broadcast. Call the press office on 08703 66 68 68
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