Hostile reception for PI compensation reforms

by Gill Montia

Story link: Hostile reception for PI compensation reforms

The Government’s proposed reforms on personal injury compensation have disappointed insurers.

The new measurers are aimed at speeding up and simplifying the claims process but have been criticised for not being sufficiently radical.

The director general of the Association of British Insurers (ABI), Stephen Haddrill, points out that the goal of reform must be a better deal for claimants.

However, he believes that the proposals would leave many claimants stuck in a slow, complex and expensive system, that denies them speedy compensation and care.

Mr Haddrill highlights the fact that no change is recommended for small claims limits and describes the decision to exclude workplace-related claims from reform as illogical, because it take on average three years to settle such a claim.

Roy Hebburn, divisional claims manager at Allianz, has concluded that the outcome of the consultation between the Ministry of Justice and interested parties is politically motivated.

Meanwhile, Gary Booton, director of health, safety and environment at manufacturers’ organisation EEF believes that the proposed reforms do not go far enough and the cost of settling claims will remain excessive.