Guilty verdict for Manchester “crash for cash” brothers
by Gill Montia
Story link: Guilty verdict for Manchester “crash for cash” brothers
Greater Manchester Police have reported that two brothers who masterminded one of the country’s biggest ever “crash for cash” scams have been convicted.
Rezwan Javed and Rehan Javed, both of Dovedale Close, Burnley, Lancashire, have been found guilty after a trial at Manchester Minshull Street Crown Court of conspiracy to defraud and possession of an [...]
Former pleural plaques claimants’ scheme open for business
by Gill Montia
Story link: Former pleural plaques claimants’ scheme open for business
Former pleural plaques claimants have until 1st August 2011 to lodge their claims with a new government scheme.
Insurers have long argued that the plaques, which are areas of fibrosis on the inner surface of the ribcage and the diaphragm, do not impact on health or lead to asbestos-related diseases.
However, following a Law Lords’ ruling in [...]
AIG agrees $725m payout for miffed pension funds
by Gill Montia
Story link: AIG agrees $725m payout for miffed pension funds
American International Group (AIG) is to pay $725 million to settle accusations of fraud brought by three Ohio pension funds.
In a class action law suit, the funds allege that between 1999 and 2005 AIG engaged in share price manipulation, anti-competitive behaviour and accounting fraud that resulted in millions in losses for shareholders.
Ohio Attorney General, Richard [...]
Law Commission reviews fraudulent claims statute
by Gill Montia
Story link: Law Commission reviews fraudulent claims statute
The Law Commission and Scottish Law Commission, which are conducting a joint review of insurance contract law, are currently considering the insured’s post-contract duty of Good Faith.
As insurance contracts are said to be based on mutual duties of good faith, commissioners have been looking at how these duties work after the contract has been formed.
An [...]
Insurers cautious on RTA personal injury claim reforms
by Gill Montia
Story link: Insurers cautious on RTA personal injury claim reforms
Research regarding a new process introduced by the Ministry of Justice (MoJ) for personal injury road traffic accident claims has produced some significant results.
According to Berrymans Lace Mawer LLP (BLM), a survey of insurance industry representatives found only 53% in favour of the reform, which comes into force tomorrow (30th April) for claims of between [...]
HMRC fails in online insurance introducer VAT appeal
by Gill Montia
Story link: HMRC fails in online insurance introducer VAT appeal
HM Revenue & Customs (HMRC) has failed in its appeal against a High Court ruling which established that the commission received by online businesses that introduce customers to insurers is exempt from VAT.
The long-running case involves Insurancewide.com and Trader Media Group, which receive commission for aggregating potential clients for insurance companies.
As a website provider, [...]
New act eases the path for third party claimants
by Gill Montia
Story link: New act eases the path for third party claimants
The Law Commission has reported that the Third Parties (Rights against Insurers) Act 2010 has received the Royal Assent.
The act reforms the Third Parties (Rights against Insurers) Act 1930 under which, if an insured became insolvent, a third party could not proceed against them but had to join the group of general creditors in the [...]
Zurich in breach of Data Protection Act
by Gill Montia
Story link: Zurich in breach of Data Protection Act
Zurich Insurance has been obliged to sign an undertaking with the Information Commissioner’s Office (ICO) agreeing to improve security.
The insurer lost an unencrypted back-up tape containing personal financial information belonging to over 46,000 of its policyholders, and has been found breach of the Data Protection Act.
Customers of Zurich Private Client, Zurich Special Risk and Zurich [...]
Royal London faces up to data protection breach
by Gill Montia
Story link: Royal London faces up to data protection breach
Royal London Mutual Insurance Society has been rapped over the knuckles by the Information Commissioner’s Office (ICO) after breaching the Data Protection Act.
The reprimand comes after eight of the firm’s laptops, two of which contained details of 2,135 people who had sought pension scheme illustrations, were stolen from the company’s Edinburgh offices.
The data were [...]
Compulsory dog insurance proposals binned
by Gill Montia
Story link: Compulsory dog insurance proposals binned
The Government has abandoned the idea of mandatory third-party insurance for dogs, the BBC has reported.
Concerns that dogs are being bred solely for the purpose of intimidating others have led ministers to review the Dangerous Dogs Act 1991 and a week ago, Home Secretary Alan Johnson announced that plans were under consideration for legislation demanding [...]
New challenge for Equitable Life policyholders
by Gill Montia
Story link: New challenge for Equitable Life policyholders
Furious Equitable Life policyholders are rejecting the latest proposed offer of compensation, as set out in a new report by Sir John Chadwick.
In 2008, Parliamentary Ombudsman Ann Abraham recommended the establishment of a scheme that would consider individual claims for compensation from those who lost money when the failed mutual came close to collapse ten [...]
New law on third-party dog insurance
by Gill Montia
Story link: New law on third-party dog insurance
The Government is considering plans for legislation that will demand every dog owner in the UK carries third-party insurance against their pet causing injury to a person.
Concerns that dogs are being bred solely for the purpose of intimidating others have led ministers to review the Dangerous Dogs Act 1991.
According to Home Secretary Alan Johnson: “The [...]
Insurers face £13 billion jump in capital requirements
by Gill Montia
Story link: Insurers face £13 billion jump in capital requirements
EMB has published a study on the latest version of the proposed European Solvency II rules in which the consultancy firm concludes that UK property and casualty insurers face a combined £13 billion jump in capital requirements.
The new rules are due to come into force in 2012 and EMB warns that they could “seriously damage” [...]
Insurers win £300,000 in “crash for cash” compensation
by Gill Montia
Story link: Insurers win £300,000 in “crash for cash” compensation
A civil action brought by a consortium of seven UK motor insurers over a “crash for cash” scam has been successful.
The High Court case relates to a major criminal ring involving 57 fraudsters in the Greater Manchester area, who used ordinary members of the public to stage their accidents.
Last week, Mr Justice Holman awarded the [...]
Insurers consider appeal on pleural plaques judgment
by Gill Montia
Story link: Insurers consider appeal on pleural plaques judgment
The Association of British Insurers (ABI) has commented on a legal judgment relating to the Damages (Asbestos Related Conditions) (Scotland) Act 2009.
The Act includes pleural plaques as a condition for which compensation is payable in Scotland, but insurers have argued that the plaques, which are areas of fibrosis present on the inner surface of the [...]
VAT shock for UK insurers with off shore operations
by Gill Montia
Story link: VAT shock for UK insurers with off shore operations
Compliance specialist TMF VAT & IPT Services is warning that changes to EU VAT rules represent a threat to European insurers that have off shored back office operations.
UK firms that have relocated functions such as administration, customer contact, claims processing and accounting to lower cost counties could be facing tax increases of upwards of 25%.
According [...]
Law Commission acts on duty of disclosure
by Gill Montia
Story link: Law Commission acts on duty of disclosure
The BBC has reported that the Law Commission is reviewing an aspect of insurance contract law that has resulted in huge numbers of claims being rejected over the years.
Under the Marine Insurance Act 1906, the consumer has a duty of disclosure when completing an insurance proposal form.
However, the Law Commission is dissatisfied because policyholders are [...]
Philip Morris ordered to pay ex-smoker $300m
by Gill Montia
Story link: Philip Morris ordered to pay ex-smoker $300m
A Florida court has ordered cigarette manufacturer, Philip Morris, to pay $300 million to an ex-smoker.
The damages have been won by Cindy Naugle, who suffers from smoking-related emphysema, and is now wheelchair bound.
Philip Morris has indicated that it intends to mount an appeal; the group’s spokesman told the BBC that the punitive damages are “grossly [...]
Delayed flight passengers now eligible for compensation
by Gill Montia
Story link: Delayed flight passengers now eligible for compensation
Air travellers whose flights arrive at their destinations three hours late or more are now eligible for compensation.
Yesterday, the European Court of Justice ruled that the damage sustained by air passengers in cases of long delay is comparable with that of cancellation.
The Court said: “There is no justification for treating passengers whose flight is delayed [...]
EU court rules on VAT and portfolio transfers
by Gill Montia
Story link: EU court rules on VAT and portfolio transfers
The European Court of Justice (ECJ) has ruled that Swiss Re is liable for €2 million in VAT on a portfolio transfer made from its German subsidiary to its Swiss-based operations, in 2002.
The case, which was defended by German tax authorities, will have consequences for the sale of reinsurance contracts in the EU, the ruling [...]
