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 [...]
Equitable policyholders win High Court case
by Gill Montia
Story link: Equitable policyholders win High Court case
The High Court has rejected the Government’s decision not to implement the full recommendations of Parliamentary Ombudsman, Ann Abraham, regarding compensation for Equitable Life policyholders who lost money when the firm came close to collapse nine years ago.
In July of 2008, Ms Abraham published a report on the demise of Equitable, which from the 1950s [...]
MoJ confirms fast-track claims process for motor injury victims
by Gill Montia
Story link: MoJ confirms fast-track claims process for motor injury victims
The Ministry of Justice (MoJ) has confirmed that it is going ahead with plans to introduce a fast-track system for compensation claims arising from motor accidents.
The new measures should be in place by April of next year, broad agreement to the changes having already been by reached by interested parties.
According to the MoJ, the new [...]
Fines for uninsured driving better value than insurance
by David Masters
Story link: Fines for uninsured driving better value than insurance
Rogue drivers getting behind the wheel without insurance are not being deterred because the penalties if they’re caught are too lenient, Direct Line claimed this week.
Under new government proposals, motorists caught driving an uninsured vehicle will be fined as little as £50 – less than fine given out to people who overfill their bin, Direct [...]
HMRC to close IPT “loophole” on domestic call out cover
by Gill Montia
Story link: HMRC to close IPT “loophole” on domestic call out cover
HM Revenue & Customs is developing new measures that could lead to higher charges for insurance contracts sold with household repair services and domestic appliances.
The move follows a High Court ruling in favour of Homeserve, the emergency home plumbing and electrics firm.
Homeserve’s 3rd party insurance call out product is provided by Inter Partner Assistance, part [...]
Itsmyclaim.com supports businesses against accident management claims
by Richard Kilner
Story link: Itsmyclaim.com supports businesses against accident management claims
Increasing litigation in the UK has seen a proliferation of accident management firms handling personal injury claims.
However, businesses can now fight back and save millions of pounds as Itsmyclaim.com enables individuals to handle their own personal injury claim.
The website, specifically designed to be user friendly, permits individuals to deal with their own claims and thereby [...]
BIBI and associates launch solicitors’ PI guide
by Gill Montia
Story link: BIBI and associates launch solicitors’ PI guide
The British Insurance Brokers’ Association (BIBA), The Law Society and The Association of British Insurers (ABI) have launched a guide to buying professional indemnity (PI) insurance for solicitors, providing a resource for the renewal process.
According to the trade bodies, the solicitors’ PI insurance market is “complicated and unique with a specific policy wording and a [...]
Insurance law up for review
by Gill Montia
Story link: Insurance law up for review
The Law Commission is dissatisfied with current insurance law, The Daily Telegraph has reported.
The independent body, which keeps the law under review and recommends reform where needed, is due to report on insurance law this autumn.
According to the newspaper, it will say that current insurance law is unsuited to mass-market consumer insurance policies because it [...]
Aviva pulls cover on insurance fraudsters
by David Masters
Story link: Aviva pulls cover on insurance fraudsters
Aviva has reported a significant increase in fraudulent insurance claims during the first half of this year.
Fraudulent claims, including fake injuries and inflated car-repair bills, increased by around a third during the six months to June.
Andrew Buck, Aviva’s claims fraud manager, speculated that the rise in claims is related to the economic downturn.
“We cannot say [...]
Insurers demand reshape of Co-op conveyancing panel
by Gill Montia
Story link: Insurers demand reshape of Co-op conveyancing panel
Insurers are toughening up with lenders at risk of mortgage fraud, with Co-operative Financial Services and its merger partner, Britannia, forced to reshape their conveyancing panel, if cover is to continue.
Solicitors on a lender’s approved panel normally act for the buyer and lender but the system can facilitate fraud as the solicitor involved is responsible [...]
Allstate settles medical expenses lawsuit
by Gill Montia
Story link: Allstate settles medical expenses lawsuit
Allstate Corporation has announced that it has settled a US class action lawsuit, Strasen v Allstate, in which the plaintiffs alleged that the group had incorrectly calculated medical expenses under the medical payments or personal injury protection coverage afforded by its automobile and homeowner insurance policies.
The case, which has been pending in the Circuit Court [...]
AIG makes chairman’s role non-executive
by David Masters
Story link: AIG makes chairman’s role non-executive
Embattled US insurer American International Group (AIG) has changed its bylaws to ensure that its chairman is independent.
The move comes one week after Harvey Golub, former American Express boss, was named as non-executive chairman.
Golub replaces executive chairman Ed Liddy, who had held the roles of CEO and chairman.
Robert Benmosche, former chairman and CEO of MetLife [...]
BBC weatherman caught driving without insurance
by David Masters
Story link: BBC weatherman caught driving without insurance
BBC weatherman Des Coleman has been banned from driving for three months after he was caught by police driving without insurance.
The former Eastenders actor, who presents the weather on East Midlands Today, was convicted in court this week after committing the offence in November last year.
Coleman, 44, faced a minimum six-months ban, but had the [...]
