Daily Insurance Industry News
Daily Insurance Industry News
Friday 26th of April 2019
September 18, 2011

RSA accused of inflating repair costs

by Gill Montia

Story link: RSA accused of inflating repair costs

RSA accused of inflating repair costs

RSA stands accused of boosting profits by using a subsidiary to inflate its motor insurance repair costs.

According to BBC Radio 4’s Money Box programme, a recent court case resulted in Circuit Judge, Judge John Platt, finding that RSA Accident Repairs had increased labour costs without carrying out any work itself, and made other charges it could not account for.

Money Box also reported that some insurers are currently highly sceptical about claims being presented by RSA Accident Repairs, and are refusing to settle.

In the case heard by Judge Platt, the BBC reports that the hourly rate for repairs was increased from £36 to £39.50 an hour without explanation; £118 was added for a road test, cleaning and an environmental charge, and £110 added for transporting the damaged vehicle when it was drivable, and the repair arrangements were local.

Meanwhile RSA is keen for motorists to be able to see clearly, if not in the area of repair costs.

The insurer has launched a campaign highlighting the dangers of driving with poor eyesight, having commissioned research which suggests that drivers with the legal minimum level of eyesight struggle to maintain a constant speed and are more likely to stray across lanes.

The study also claims that the current UK number plate test is not fit for purpose and the insurer wants distance vision tested by a qualified professional, prior to a person applying for a provisional driving licence.

Launching the campaign, RSA UK chief executive, Adrian Brown, says: “People driving with poor eyesight are a neglected danger on our roads and … you wouldn’t own a car and not MOT it, so why not MOT your eyes?”


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