Not content on the effective execution of the personal injury industry, insurers are now preparing to target the compensation payments that genuine claimants are paid out for their injuries.
Head of Motor and Liability at the Association of British Insurers, James Dalton has called for a public discussion to be held regarding the level of damages that is currently received by claimants, claiming society needed to start this debate.
And yet again he used the insurance industry’s favourite chat up line, telling the Claims Magazine conference in Manchester on Wednesday that: “High compensation awards mean higher car insurance premiums.”
He went on to tell the conference: “If insurers pay less in compensation, insurance premiums will reduce further. And the industry will have more capital available to invest in well-run companies or infrastructure to support the economic growth, which (the) budget reminds us is so desperately needed.”
Of course Dalton knows the benefit of using these lines to flirt with the government and there will now, undoubtedly be genuine fears about what the future holds for genuine claimants and their compensation payments, which Dalton and the insurance industry need reminding is absolutely necessary to aid their recovery and rehabilitation.
What’s more the evidence about exactly where any extra profit made by the insurers goes, is staring the government in the face, with Dalton admitting that the industry had a lot to do to re-earn the consumers trust after it was revealed that leading insurers profited from selling clients’ details to law firms and claims management companies.
Dalton also stunned onlookers at the event when he accused claimant solicitors of pretending the legal system would collapse. He told the conference: “Stop pretending that the English legal system is about to collapse because the gravy train of excessive fees has finally hit the buffers. Personal injury lawyers will have work to do after April.”
Perhaps Dalton wouldn’t mind telling that to the firms that have already folded in the run up to the reforms.
1. Pixabay; Philip Pena; https://pixabay.com/en/coins-money-currency-coin-banking-293860/