Partly Cloudy

Partly Cloudy

max temp: 26°C

min temp: 16°C

ESTD 1874 Search

The pigs have arrived. See the latest

Pigs Gone Wild

news here.

East Anglia: Insurer calls for a big shake-up of system

16:18 15 February 2013

Dominic Clayden, claims director at Aviva.

Dominic Clayden, claims director at Aviva.

Archant

Motor insurance premiums could be slashed by up to £60 a year by cutting out lawyers and claims management companies, according to Aviva.

The Norwich-based insurer has outlined proposals for a shake-up of the way personal injury claims are handled by making claimants deal directly with the “at-fault” insurers, rather than third parties.

In a report published yesterday, Aviva said whiplash claims currently added £118 to every motor premium – while its plans would seek to strip away about £1.5bn in excess costs.

But partners at two law firms in Norwich said the move would leave claimants out of pocket because insurers would be tempted to under settle.

Dominic Clayden, claims director at Aviva, said: “Our figures for average compensation settlements show that dealing direct with an insurer results in at least as much compensation for the claimant and has the advantage of being quicker –meaning their treatment and rehabilitation can start almost immediately. Our focus is on their recovery and settling their claim quickly and fairly. It would also prompt a significant reduction in the costs of the current system which would benefit all UK motorists, who will begin to see a reduction in their premiums.”

As well as cutting costs, Aviva’s ‘Road to Reform’ report calls for the introduction of a “truly independent panel of medical experts” to deal with whiplash cases.

Meanwhile, its research of 400 drivers who had made a personal injury claim revealed that 33pc spent their money on medical treatment, 29pc used it to pay-off household debt, and 12pc bought luxury items like TVs.

Stephen Green, head of the personal injury and professional negligence department at Fosters Solicitors, said the Aviva report had nothing to do with lowering premiums, but was about cutting its own costs.

He said: “The insurers will be tempted to under settle whenever they can and the victim, who is neither a legal nor a medical expert, will have no idea whether the offer made is fair or not. This practice is not new. It is called ‘Third Party Capture’ – the clue is in the name and the insurers have been doing it surreptitiously for years.

“This is not about lower premiums or rehabilitation. It is about insurers reducing their costs and increasing their profits.”

Meanwhile, Colin Cook, partner at solicitors Hatch Brenner, said: “Claimants don’t always know what their loss is worth, and I have had experiences where insurers will undervalue a claim when the claimant could get a more favourable outcome by obtaining advice from a lawyer.”

1 comment

  • Just another aspect of rip-off Britain.

    Report this comment

    Tony G

    Saturday, February 16, 2013

An artist's impression of the new look planned for the former BBC Television Centre bulding in the White City area of west London.

Mildenhall-based English Architectural Glazing (EAG) has won a major contract to carry out work as part of the multi-million-pound regeneration of the former BBC Television Centre in London.

Laurence Johnson and Daniel Le Sauvage of Urban Vintage in Framlingham.

An award-winning independent men’s fashion retailer from Suffolk is celebrating its new store opening today with special offers and free drinks.

Sizewell C

Proposals to build a new £16billion nuclear power station on the Suffolk coast will move a step closer next week.

Alex Till, chief executive of Menta, left, with John Baxter, managing director of eAlliance Learning Technology which has formed an online learning partinership with the enterprise agency.

Suffolk-based business support organisation Menta has launched a new online learning partnership to help busy entrepreneurs develop their skills.

Tristel's headquarters at Snailwell, near Newmarket.

Infection prevention and contamination control products company Tristel said yesterday that profits for the 12 months to June 30 will come in ahead of market expectations.

HOT JOBS

Show Job Lists

Most read

Most commented

Topic pages

Streetlife

Newsletter Sign Up

Sign up to the following newsletters:

Great British Life

Great British Life
MyDate24 MyPhotos24