Posts Tagged ‘insurance’
Wednesday, January 25th, 2012
The Law Society and the Solicitors’ Regulation Authority (SRA) have been given permission to intervene in Godiva Mortgage Limited v Travelers Insurance Company Limited. The issue is the extent to which insurers’ liability to cover multiple claims against a solicitors’ practice may be limited by aggregating them as one claim.
The current position which appears to allow large numbers of claims to be aggregated was arrived at after a decision by the SRA to shift the goal posts in favour of the insurers by altering the aggregation clause in the Minimum Terms and Conditions in 2005. It is now obviously felt that the Insured solicitors, their clients (and in cases of dishonesty, the Solicitors’ Compensation Fund) are insufficiently protected.
Further clarity on the wording is needed to allow underwriters to assess accurately the risks and fix premiums. This may result in solicitors (and other professionals) insisting on certain wordings in their primary policies, driven in all likelihood by their clients, especially mortgage lenders.
Posted by Jim Hobsley, who specialises in professional indemnity claims involving a wide range of professionals including accountants, surveyors, solicitors and barristers; experienced in policy coverage disputes.
Jim Hobsley
0207 337 1011
jhobsley@brownejacobson.com
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Rating: 0.0/10 (0 votes cast)
Tags: insurance, law society, liability, mortgage lenders, professional indemnity, public liability claims, solicitors regulation authority
Posted in Insurance, Professional Indemnity | No Comments »
Friday, January 20th, 2012
This week brings news that four siblings received nearly £1m from Essex Council. Their claims were based on alleged failings on the part of Essex social workers. The detail of each claim is confidential but they do reflect a change in the quantum of damages that claimants are expecting in abuse cases (and a corresponding increase in costs).
Even 5 years ago claimants proving prolonged and very serious sexual abuse over a number of years were recovering a maximum of £50,000 General Damages. More minor and isolated incidents might attract as little at £5,000. Special Damages claims were also relatively modest, with Claims of Therapy of £7,500 on average, and future loss of employment capacity usually calculated on a Smith -v- Manchester basis at between £10,000 and £20,000.
These days the effect of cases like this, and claimants’ increased use of CFAs means we are often reserving even modest claims at £100,000.
Posted by Sarah Erwin-Jones, who specialises in social services, the care sector, education and negotiating legal costs; advises on risk management issues including data protection matters.
Sarah Erwin-Jones
0115 976 6136
serwin@brownejacobson.com
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Rating: 8.5/10 (2 votes cast)
Tags: cfa, child abuse, childrens social care, claims of therapy, essex council, insurance, Social Care, social workers
Posted in Insurance, Social Care | No Comments »
Thursday, January 12th, 2012
Days after Cameron launches an attack on the compensation culture the Transport Select Committee has recommended changes to the law to reduce the rising costs of whiplash injury claims.
The Committee reports there has been a 70% rise in motor insurance injury claims in the past six years, despite a 23% drop in the number of RTA casualties.
It recommends an increase in the threshold for receiving damages in whiplash cases and if this fails to reduce the number of claims significantly, the government should bring forward primary legislation to require objective evidence of whiplash injury and it having a significant effect on the claimant’s life, before compensation is paid.
Anyone who has been involved in a road traffic accident or who deals with these claims will be aware of the huge industry that now surrounds even the most minor accident. It is time for a change.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 9.3/10 (7 votes cast)
Tags: Browne Jacobson LLP, compensation claims, compensation culture, insurance, litigation, motor, motor insurance fraud, personal injury, road traffic accidents, road traffic claims, steven conway, whiplash claims
Posted in Insurance, Litigation | 1 Comment »
Friday, January 6th, 2012
David Cameron has vowed to protect British businesses by “waging war” on the health and safety culture inflicting the UK.
With many depicting a double dip recession on the horizon Cameron argues businesses need some respite from the “battle against a tide of risk assessment forms and fear of being sued for massive sums”.
Many believe there is almost strict liability for employers’ liability claims which makes even accidents where there is no fault on the part of the employer virtually impossible to defend.
Cameron intends to abolish or consolidate up to half of the existing health and safety regulations and to change laws so that businesses are no longer automatically at fault if something goes wrong.
Whilst we await the Prime Ministers detailed proposals his call for individuals to take “responsibility for our actions and rely on common sense” will be welcomed by all those who have felt that the scales had tipped too far in favour of the careless, feckless and work-shy.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 9.8/10 (6 votes cast)
Tags: compensation culture, David Cameron, employers liability, health and safety, insurance, steven conway, strict liability
Posted in Employers & Public Liability, Health & Safety, Insurance, Litigation | No Comments »
Tuesday, January 3rd, 2012
The latest version of Well-maintained Highways: the Code of Practice for Highway Maintenance Management has been released which includes updated chapter 13 providing guidance on Winter Service.
This revision is a consolidation of all previous UK Roads Liaison Group winter guidance documents and includes new detailed information on the scope and detail recommended for local authority winter maintenance policies. Local authorities would be well advised to note these to ensure they comply with their duty under section 41(1A) of the Highways Act 1980 as we head in to the winter weather season.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 10.0/10 (4 votes cast)
Tags: browne jacobson, codes of practice for higways maintenance management, insurance, litigation, local authority winter maintenance, section 41(1A) of the Highways Act 1980, steven conway, uk roads liaison group, well maintained highways, winter service
Posted in Insurance, Litigation, Local Authorities | No Comments »
Wednesday, December 14th, 2011
The scale of the challenge facing Government plans to reduce the claims culture is becoming increasingly clear as the Legal Aid Sentencing and Punishment of Offenders Bill progresses through parliament.
Within the Lords, amendments have been proposed, which would have the effect of taking the teeth out of the CFA and ATE provisions. These include allowing unions to continue funding claims on the current basis and potentially unachievable obligations on the Lord Chancellor to be satisfied before the provisions come into effect.
At the same time, businesses affected by the Act are beginning to announce their plans to use alternative business structures (ABS) to circumvent a referral fees ban. The latest reports relate to Admiral insurance, but it is likely that many others are weighing their options.
These moves are not unexpected. The question now is whether industry’s ability to outmanoeuvre the Bill, coupled with sufficiently coordinated opposition in the Lords will force a Government re-think.
Posted by James Arrowsmith, who specialises in high value personal injury claims, extensive experience of claims relating to head injuries and serious bodily injury, psychiatric damage and injuries to children.
James Arrowsmith
0121 237 3981
jarrowsmith@brownejacobson.com
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Rating: 5.5/10 (2 votes cast)
Tags: admiral, alternative business structures, ate, cfa, insurance, legal aid sentencing, punishment of offenders bill
Posted in Insurance | No Comments »
Friday, November 25th, 2011
The case of Fortune v Roe has re-visited the question of success fees and what the correct success fee ought to be if certain risks are removed from the litigation.
In this case the Claimant had been involved in a very serious car accident but by the time she entered into a CFA liability had been admitted and judgment entered for damages to be assessed. The CFA provided for a success fee of 100%. Sir Robert Nelson found that there was no risk to the recovery of charges to the solicitor and there could not be said to be a litigation risk. Therefore the only risk was of receiving no costs after beating a Part 36 offer and the success fee would represent compensation for that. As a result the court found that a success fee of 100% could not be justified and the figure of 20%, awarded by the first instance judge was upheld.
This shows the importance of getting the risk assessment on the CFA right. If it’s not an accurate assessment then we can expect the courts to get involved – with cost consequences!
Posted by Nichola Evans, who specialises in professional indemnity work, directors and officers, legal expenses insurance, conditional fee agreements and after the event insurance and commercial litigation.
Nichola Evans
020 7337 1019
nevans@brownejacobson.com
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Rating: 0.0/10 (0 votes cast)
Tags: cfa, insurance, litigation, litigation costs, Part 36, professional indemnity, risk assessments, success fees
Posted in Insurance, Litigation, Professional Indemnity | No Comments »
Wednesday, October 26th, 2011
Kenneth Clarke today (26 October) set out his proposals for a ban on referral fees in the form of draft amendments to the Legal Aid Sentencing and Punishment of Offenders bill.
Clarke’s solution excludes the creation of a criminal offence but instead relies on regulation enforced by the FSA, Claims Management Regulator, Law Society and Bar Council. Rather than setting out a comprehensive regime, Clarke relies on powers to create secondary legislation and regulatory rules to bring the ban into effect.
The initial ban would be confined to claims relating to injury or death, with the Lord Chancellor empowered to extend the categories. An exception is included for payments in relation to services (eg advertising) but the Lord Chancellor may limit the sums payable to control this potential loophole.
The proposals set out by Clarke are a measured response to referral fees which, in light of the cross- party support for a ban, should have good prospects of surviving the remaining stages of this bill’s passage.
Posted by James Arrowsmith, who specialises in high value personal injury claims, extensive experience of claims relating to head injuries and serious bodily injury, psychiatric damage and injuries to children.
James Arrowsmith
0121 237 3981
jarrowsmith@brownejacobson.com
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Rating: 0.0/10 (0 votes cast)
Tags: claims management regulator, FSA, insurance, Kenneth Clarke, law society, legal aid, punishment of offenders, referral fees, regulatory rules
Posted in Insurance, Regulatory | No Comments »
Tuesday, October 11th, 2011
The Government Actuary’s Department has just (10 October 2011) published the 7th edition of the Ogden tables. This is seen as an interim step towards a more substantially revised 8th edition, expected in Autumn 2012.
The update reflects changed mortality predictions published since the 6th edition and includes minor clarifications to the accompanying guidance, including an amendment to the definition of ‘disabled’.
Across the board, the tables show an average increase of around 4.5% at a discount rate of 2.5%, though the most substantial increases lie in the pensions tables so that the impact on claim reserves will be less.
A more substantial change would result from a change to the discount rate which is currently under review by the Lord Chancellor.
Posted by James Arrowsmith, who specialises in high value personal injury claims, extensive experience of claims relating to head injuries and serious bodily injury, psychiatric damage and injuries to children.
James Arrowsmith
0121 237 3981
jarrowsmith@brownejacobson.com
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Rating: 0.0/10 (0 votes cast)
Tags: Actuary Department, browne jacobson, insurance, james arrowsmith, Mortality predictions, ogden tables pensions
Posted in Insurance, Pensions | No Comments »
Tuesday, October 11th, 2011
A senior Scotland Yard officer has warned motorists to beware of “cash for crash” insurance scams following the sentencing of six men charged with insurance fraud following three induced road traffic accidents totalling over £50,000.
Only one of those charged received a custodial sentence, jailed for 8 months after admitting conspiring to defraud insurance companies, while the remaining five received suspended sentences having admitted committing similar offences.
Contrast these sentences with those handed out in the recent riots where one rioter was jailed for six months for stealing a £3.50 case of water from a supermarket while another was jailed for five months for receiving a pair of shorts given to her after they had been looted from a city centre store.
Judges criticised for the apparent harshness of sentences given to rioters were defended on the basis that the sentences handed down had a deterrent effect. Perhaps the time has come for the courts to take a similar approach to insurance fraud, or else continue to be seen as a soft touch.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 10.0/10 (10 votes cast)
Tags: browne jacobson, Cash for crash, fraud, induced traffic accidents, insurance, insurance fraud, insurance scam, litigation, motor, motor insurance fraud, planned traffic accidents, steven conway
Posted in Insurance, Litigation | No Comments »
Friday, September 30th, 2011
The European Council and the Economic and Monetary Affairs Committee have proposed that regulated firms will need to comply with Solvency II requirements from 1 January 2014. They have also proposed that firms must submit their implementation plans to supervisors in the summer of 2013.
The Council has also suggested that the European Insurance and Occupational Pensions Authority (EIOPA) should have until 31 March 2013 to issue guidelines on the contents of implementation plans. With the deadline for delivery of implementation plans set for 1 June 2013, and with most firms having already begun drafting (or, at least, considering) their implementation plans, the industry will be concerned that there will be insufficient time to respond to EIOPA’s guidance before the deadline for submission, just 2 month’s later.
The FSA is yet to issue any comment in response to the Council’s proposals.
Posted by Tim Johnson, who specialises in professional indemnity claims; defending professionals in the property, legal, financial services and IT sectors; also advises in relation to insurance coverage disputes.
Tim Johnson
0115 976 6557
tjohnson@brownejacobson.com
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Rating: 10.0/10 (1 vote cast)
Tags: browne jacobson, economic and monetary affairs committee, EIOPA, European Council, european insurance and occupational pensions authority, FSA, insolvency, insurance, Pensions, regulated firms, solvency II, Tim Johnson
Posted in Insurance | No Comments »
Thursday, August 11th, 2011
The Highways Agency, which oversees motorways and trunk roads is introducing rules requiring contractors to carry out emergency repairs only if the potholes are more than 4cm deep or 15cm wide, meaning that potholes under this size will not be repaired.
Previously contractors were required to ensure the road gave an “even, comfortable and quiet” ride and to patch even minor defects within 24 hours.
Concerns have been raised that this will lead to more temporary speed restrictions being imposed and cost more in the long term because there will be less preventive maintenance but the real concern must be to the safety of the road network with the increased risk of motor accidents and the increase in claims against the Highways Agency.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 9.1/10 (11 votes cast)
Tags: budgets, code of practice for highway maintenance, emergency repairs, Highways Agency, insurance, local authorities, potholes, steven conway
Posted in Insurance, Local Authorities | No Comments »
Wednesday, July 27th, 2011
An army officer’s claim for damages for personal injuries sustained during a formal adventurous training exercise has been dismissed by the court.
As the leaders of the group crossed a rugged terrace there was a rock fall from the area where they had reached. One of the group was struck on the head by a rock and suffered skull fractures resulting in a severe traumatic brain injury.
The court ruled there had been no breach of duty of care by the leaders. The leaders held appropriate qualifications to lead the climb and had undertaken proper risk assessments and continuous reviews. It was impossible to say what triggered the rock fall and a fuller reconnaissance of the route would not have led to any different course of action.
This tragic accident demonstrates that many hazardous activities carry inherent risks which cannot be negated completely and provides a good indication as to the extent of planning organisers should have in order to satisfy their obligations.
Posted by Jonathan Cook, who specialises in defendant public liability work including employers’, occupiers’ and highways liability cases from initial instruction to trial. Including small claims, fast and multi track work.
Jonathan Cook
0115 976 6150
jcook@brownejacobson.com
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Rating: 0.0/10 (0 votes cast)
Tags: Claims, insurance, negligence, personal injury claims, risk assessments
Posted in Employers & Public Liability, Insurance | No Comments »
Wednesday, July 27th, 2011
“It makes no sense to think that an insured may have become time-barred in a claim … before … he has any cause of action to bring it”. Sounds obvious but that wasn’t the High Court’s approach when it upheld a time-bar clause in McILroy. The public liability policy provided that the insured must refer any dispute about the insurer’s “liability in respect of a claim” to arbitration within 9 months or the claim was deemed abandoned. At first instance, the insurer successfully relied on the fact that proceedings were not issued until after 9 months from its refusal to indemnify for breaches of condition precedent.
The Court of Appeal has now overturned that decision because the High Court ignored the long-standing principle that liability under an indemnity policy is not triggered until the existence and extent of liability to the third party is established (Post Office v Norwich Union (1967)).
Therefore, in dispute resolution clauses, “claim” means “crystallised claim”.
Posted by Jonathan Newbold, who specialises in professional negligence, financial services and commercial dispute resolution; advises insurers on policy wording and coverage matters.
Jonathan Newbold
0115 976 6581
jnewbold@brownejacobson.com
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Rating: 0.0/10 (0 votes cast)
Tags: Claims, Court of Appeal, crystallised claim, High Court, insurance, McIlroy, Post Office v Norwich Union (1967), public liability policy, time-bar clause
Posted in Insurance, Professional Indemnity | No Comments »
Thursday, June 2nd, 2011
On 1 May the Employers’ Liability Tracing Office (ELTO) took the place of the ELCOP as the organisation responsible for maintaining a database of EL insurance policies, and providing search facilities for claimants. At the start of April 95% of the industry had already signed up to ELTO.
Over time, the EL database is likely to grow into a near-comprehensive record of current and historic insurance data, not unlike the MID. Insurance investigations have proven in the past to be time consuming and costly, and if the database can reduce these then it will benefit claimants and defendants alike. ELTO could also provide valuable support if the motor claims portal is extended to include EL as it will help ensure that correct insurers are identified.
Further developments in EL insurance may follow. There is scope for a scheme similar to continuous insurance enforcement which has succeeded in reducing uninsured driving, and the Government has yet to confirm plans for an EL equivalent to the MIB.
Posted by James Arrowsmith, who specialises in high value personal injury claims, extensive experience of claims relating to head injuries and serious bodily injury, psychiatric damage and injuries to children.
James Arrowsmith
0121 237 3981
jarrowsmith@brownejacobson.com
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Rating: 0.0/10 (0 votes cast)
Tags: EL database, ELCOP, ELTO, employers liability tracing office, insurance
Posted in Employers & Public Liability, Insurance | No Comments »
Wednesday, June 1st, 2011
The fight against insurance fraud received a shot in the arm when the Court of Appeal allowed Zurich Insurance to pursue a claim for fraudulent representation.
Colin Hayward claimed around £420,000 for an accident at work. His employer’s insurers were suspicious and they alleged that he was exaggerating his injuries. In October 2003 the claim was settled for around £135,000 but two years later evidence emerged which suggested Mr Hayward had made a complete recovery from his injuries over a year before settlement.
Zurich sought damages. The claim was struck out by the Judge who held that there was no material difference between Zurich’s allegations of fraud in both cases. The Court of Appeal disagreed and have allowed Zurich’s claim for damages to proceed.
This is a welcome decision for defendants and their insurers who are safe in the knowledge that if fresh evidence later comes to light they will not be prevented by the courts from pursuing claimants for damages.
It also serves as a reminder to those claimants who make miraculous post-settlement recoveries that they can still be pursued if they have induced settlement through deceit.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 10.0/10 (8 votes cast)
Tags: Court of Appeal, employers liability, fraud, insurance, steven conway, zurich
Posted in Employers & Public Liability, Insurance, Litigation | No Comments »
Tuesday, May 31st, 2011
The uncertainty over the validity of Part 36 offers expressed to be “open for 21 days” ended with Friday’s Court of Appeal judgment in C v D [2011] EWCA Civ 646 which confirmed that Part 36 offers cannot be time-limited.
The Part 36 offer in that case was however saved from failing by the court construing “open for 21 days” as meaning it would not be withdrawn within 21 days, without the permission of the court.
In the light of this decision, Part 36 offers which are presented as a Part 36 offer and which otherwise comply with its form will not readily be interpreted by the courts in a way which will prevent them from being valid Part 36 offers.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 9.0/10 (9 votes cast)
Tags: C v D, CPR, insurance, Part 36, steven conway
Posted in Insurance, Litigation | No Comments »
Thursday, May 26th, 2011
Lambeth Council has changed its definition of potholes as part of its attempt to save £37 million this year in order to protect key services. The Council used to repair holes 25mm deep but will now only repair those over 40mm deep and will check roads once every six months instead of once every four. It is suggested that this redefinition is likely to be adopted by 75% of councils.
Reducing highway maintenance and inspections regimes to fall in line with the Well Maintained Highways – Code of Practice for Highway Maintenance represents an easy win for Councils looking to save money but the recent Court of Appeal decision in Wilkinson v City of York [2011] EWCA Civ 207 was a shot across the bows for highway authorities seeking to deviate from the standards recommend in the Code, based on budgetary constraints.
While Councils struggle to prioritise their budgets, there is some risk that today’s savings may be tomorrow’s increased claims costs.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 10.0/10 (7 votes cast)
Tags: budgets, code of practice for highway maintenance, highways, insurance, lambeth council, local authority, potholes, steven conway, well maintained highways
Posted in Insurance, Insurance - Advisory, Procurement | No Comments »
Monday, May 23rd, 2011
There has been considerable debate in relation to the most appropriate method of procurement of insurance for local authorities with many adopting different practices.
After the EU Commission opened an infringement procedure against the Netherlands for awarding public contracts for fire insurance by means of the negotiated procedure with publication of a contract notice, the Dutch authorities have now clarified that they consider this practice to be in violation of EU public procurement rules. They will now apply the correct procedures and indicate all the relevant information in the contract award notices in the EU Official Journal. With a similar approach likely to be taken in the UK, those procuring insurance for local authorities in the UK who had previously followed the negotiated procedure should take heed to avoid the risk of challenge.
Posted by Steven Conway, specialising in: defence of claims on behalf of insurers, local and public authorities, in particular employers’ liability and public liability claims.
Steven Conway
020 7337 1037
sconway@brownejacobson.com
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Rating: 10.0/10 (7 votes cast)
Tags: insurance, insurance advisory, local authority, negotiated procedure, Procurement, steven conway
Posted in Insurance, Insurance - Advisory, Procurement | No Comments »
Friday, January 7th, 2011
Claims management companies are prohibited from inducing claims by offering an immediate cash payment as an inducement to the public to make injury claims. However, this has not prevented them from offering cash back, often between £200 and £500, on acceptance of a claim by solicitors.
The distinction is technical, and the practice was descried by Lord Young in Common Sense, Common Safety as a ‘high pressure marketing technique’ which fuels perceptions of a compensation culture. Young recommended that the practice be prohibited.
The Ministry of Justice is now consulting on an amendment to the Claims Management Regulations which would have the effect of banning all cash incentives in relation to personal injury claims.
The consultation is open until 10 February.
Posted by James Arrowsmith, who specialises in high value personal injury claims, extensive experience of claims relating to head injuries and serious bodily injury, psychiatric damage and injuries to children.
James Arrowsmith
0121 237 3981
jarrowsmith@brownejacobson.com
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Rating: 10.0/10 (2 votes cast)
Tags: Claims, insurance, Lord Young
Posted in Insurance, Insurance - Advisory | No Comments »
