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car accident

British insurers and your car accident claim

Got a car accident claim? Well look out because The Dalton ‘gang’ plan to carry out daylight robbery. 

ABI does not stand for The Association of British Insurers, it stands for Anti-Britain’s Injured and in its howls of hubris-fuelled hyperbole, it never ceases to amaze in its crass attempts to hijack the accident compensation agenda and engage in behaviour befitting Wild West outlaws.

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whiplash

The AXA man and the Straw man claim there is no such thing as whiplash in the land of Oz….

Apparently, a few days ago, in the mythical land of Oz, the AXA man (distant relation to the Tin man) and the Straw man presented a wizard idea to an invited audience. ‘There is no such thing as whiplash’, they declared, ‘even if it existed, which it doesn’t, it doesn’t hurt. If you think something might be wrong and if you hurry, you can see one of our approved doctors over in Munchkin Land who will tell you how to get back to work asap. Naturally, the Wizard will not be paying compensation under any circumstances – premiums are high enough around here, what with accidents happening every day.’

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Secrets and lies – The dysfunctional car insurance meerkat (and other animals)

Secrets and lies - The dysfunctional car insurance meerkat (and other animals)

BBC Images

Monday’s Dispatches investigation on Channel 4, presented by Harry Wallop certainly packed a punch and was a welcome riposte to the insurance lobby’s PR deluge of misinformation, miscreancy and mendacity.

We hope it is the first of many broadsides in the fight to redress the balance in favour of the British public’s entirely reasonable expectation to be treated fairly by some of the world’s largest corporations.

Not much to ask you would think but these guys have had it their own way for so long now and have so successfully weasled their way into government circles that they are setting the insurance agenda for all of us. A concerted effort by the concerned is required NOW to identify the real villains of the piece and the true insurance scammers operating in this dysfunctional market.

In our opinion this documentary was a good first step because it exploded the myth that insurance companies are primarily concerned about us, their customers.

The film absolutely nailed the point that the insurance companies and accident management firms are only concerned about maximising their profit margins as they pressurise motorists to deal with their ‘approved’ body shops and pressurise the garages to carry out work at minimal cost., often using non-standard parts.

Now this would not in itself be such a problem if savings were shared between insurance companies and policy holders and work was carried out to a high standard but this does not happen…and our premiums go up and up.

Evidence from experienced people in the trade confirmed that the pressure insurance companies put on body shops to cut costs compromises the integrity of the damaged vehicle and the safety of the driver and their family.

The story gets worse.

If a driver is involved in a no-fault accident his/her insurance company will seek to max out the ‘value’ of the claim by shamelessly inflating the cost of the repairs and hitting the other side for all they are worth….and who pays for this?

Correct. We do every day.

Whilst the insurance companies are busy portraying themselves as ‘holier than thou’ and the nation’s protectors of the vulnerable, they are busily scamming the market for every penny they can extract from supplier rebates and other kickbacks and exploiting their customers without any regard to the principles of good business practice, far less business ethics.

The insurance companies then have the bare-faced audacity to stuff their own pockets with all this extra ‘bunce’ and then claim that innocent accident victims who have the temerity to claim compensation are responsible for the hike in premiums which the Office of Fair Trading (OFT) states are inflated to the tune of at least £250m per annum by the industry’s own malpractices.

Their underhand tactics have thankfully not gone completely unnoticed. The OFT has announced that it will be investigating the insurance market, despite the best efforts of a toadying government to foster the myth of a compensation culture and agree to virtually everything the Association of British Insurers (ABI) has demanded in recent years.

In typical weasel word fashion, as befits its modus operandi, the ABI claims that it welcomes an investigation. Aye right, we’ll see…as we live in hope.

Meanwhile, we are still waiting for the ABI to explain why its members are paying out on claims known to be fraudulent.

If a claim is known to be fraudulent why does the industry not take action to prosecute the fradusters? The conclusion must be that the insurance companies are spending a hefty chunk of our car insurance premiums on fraudulent claims. Perhaps the ABI’s Nick Starling can explain why this SCANDAL is allowed to go on unchecked.

Could it be that there are far fewer fraudulent claims than suits the ABI position and that the creation of the ‘bogeyman’ of an insurance fraudster is a very useful whipping boy when it comes to peddling lies about whiplash claims and the impact on premiums?

We will be asking the OFT to look at this matter very closely…and checking with Harry Wallop to see if he is planning to look at the government’s and the insurance industry’s perverse approach to dealing with personal injury claims.

Written by Andy Thorogood, Business Development Manager, Bonnar Accident Law. 

 

Referral fees in personal injury cases – the real culprits

How would you feel if your solicitor had sold your personal details to an insurance company, a claims management company, a car hire firm or a vehicle repair garage? …Exactly.

…and how would you feel if your insurance company had sold your personal details without your knowledge??

The fact is that insurance companies have been making money this way for years, by selling accident details to third parties.

Now, having been found out, they now have the bare-faced cheek to welcome the proposed government reforms announced last week by Jonathan Djanogly MP, Under Secretary of State for Jusrtice. The Association of British Insurers (ABI) is on record as stating that they didn’t actually want to charge referral fees in the first place but felt they had to otherwise someone else would.

Well that’s alright then. What they really meant to say was that they could not possibly ignore a lucrative, no-cost, income generation stream, so why not have the moral fibre to say so?

Then they shamelessly turn the heat up on innocent accident victims claiming that people who have the temerity to actually seek compensation are the main cause of increases in car insurance premiums.

It is really quite nauseating to hear the insurance companies bleat their belated concerns on referral fees from their newly discovered moral high ground.

As personal injury solicitors helping hurt and injured people every day, we regularly have to dispel the myths and set the record straight on what’s involved in making a compensation claim.

We never have and never will pay an insurance company for a road traffic accident claimant’s details and we would be very happy to see the back of referral fees for all types of personal injury cases.  We would welcome much greater transparency at every stage of the claims process, because for the most part most of the public have got it wrong through no fault of their own.

They have been fed a line by the insurance companies that claiming compensation is borderline immoral in this current climate and conversely  ‘sold’ an idea by the claims companies that they only need to register aclaim to be awarded damages. No wonder people are confused…and no wonder most people with a genuine claim still do not make a claim for compensation (The Association of Citizens’ Advice Bureaux research).

The problem,however, is that the current heated debate has not shed much light on the real culprits, namely the insurance industry and claims management firms.

The former uses its slick PR machine to vilify and stigmatise legitimate claimants and actively discourages accident victims from making a claim. The latter get in between claimants and professionally qualified legal advisors and have created a commodity market in accident claims which they seek to trade.

The real losers are the claimants. Many car accident victims are discouraged by their own insurance company from appointing an independent solicitor and furthermore claimants are generally unaware that they are often not dealing directly with a qualified solicitor but with an unqualified and unregulated claims management intermediary who is normally unable to do anything for them other than ‘find’ them a lawyer – at a price…expensive televison adverts have to be paid for somehow. 

The answer is simple. Let claimants shop around..as most are now already doing.

There is no shortage of advice available to help people make an informed choice and by advice I mean proper independent advice such as that provided by the CAB, The Law Society of Scotland, The Association of Personal Injury Lawyers or organisations such as Headway UK – the Brian Injury Association – none of which have a financial interest in recommending the best solicitor for the job.

As a final check claimants should always seek out and study testimonials from satisfied customers of their preferred law firm. 

 

 

   

 

 

  

Banning referral fees for personal injury claims in the UK – who is to blame for increased car insurance premiums?

According to the Association of British Insurers, motorists who have been in a road traffic accident are the main cause of increased car insurance premiums.

 

Unfortunately for hurt and injured people, insurance companies are winning the public debate on the so-called compensation culture and last week’s decision by the government to ban the payment of referral fees in exchange for the contact details of road traffic accident victims would appear to vindicate their position that UK motorists are driving up costs by making up spurious accident compensation claims with intent to defraud the system…

 

Are we really to believe that the majority of road traffic accident claims are fraudulent?

 

However, let’s assume for argument’s sake that motorists the length and breadth of the UK are indeed staging accidents for the purpose of making a claim. If it is true that fraudulent claims are costing the insurance industry millions and these costs are being passed on to other motorists we have to wonder why these claims are being settled at all.

 

If the insurance companies know for a fact that the claims are fraudulent why on earth are these people not being prosecuted?

 

Either the insurance companies are happy to pay out on fraudulent claims, lazily pass the costs on to other policy holders and not pursue the fraudsters through the courts, or they have no evidence to back up their core assertion that personal injury claims are the cause of increased premiums. THEY CAN’T HAVE IT BOTH WAYS.

 

We all know how difficult it can be to make a legitimate claim on our own household insurance policy for a genuine accident at home and we all know from personal experience or from talking to family and friends the lengths that insurance companies will go to avoid paying out.

 

Are we really to believe that insurance companies apply a less rigorous test when assessing the merits of a (potentially) costly personal injury claim and deciding whether or not to admit liability?

 

Can it be that insurance companies just don’t like paying out on insurance policies?

 

When making a claim for personal injury following a road traffic accident the injured person has to prove that their injuries were caused by someone else. Without proof there is no claim, period.

 

At Bonnar & Company we very quickly root out any potential accident compensation claims that are likely to fail from lack of evidence. However, injured people can sometimes find it hard to understand that we cannot help them with their claim if we cannot prove that someone else was at fault.

 

It is even harder to take when injuries are very serious and the accident victim has clearly suffered but the fact remains – solicitors need to prove their cases. Otherwise anyone could claim for an injury and the insurance company would just pay up, no questions asked…Wait a minute. Is this not the line we are being fed by the insurance industry?

 

So what is the insurance industry talking about? Simples! The answer is profit, plain and simple. The insurance industry would prefer that nobody made a claim for personal injury and that is why their propaganda machine has moved into overdrive recently to stigmatise hurt and injured people who are already worried about making a claim.

 

Make no mistake we want a healthy and vigorous insurance industry with the financial strength to provide us all with cover but we want a fair insurance industry that will compensate genuine accident victims with as little fuss and bluster as possible.

 

What is an accident victim expected to do? Are we just supposed to grin and bear it when some careless driver runs into us, causing us pain and suffering and forcing us to take time off work…if we’re lucky?

 

What if we’re not lucky? What if we can’t work again? What if we can’t walk again? What if the outcome is even worse for us and by association for our families?

 

Against this backdrop of pain, suffering and loss of earnings the insurance industry has worked tirelessly to paint innocent accident victims as the villains of the piece and make them think twice about taking independent legal advice.

 

Let’s be clear on one thing. A successful personal injury claim is not the same thing as a lottery win. In order to be awarded compensation the successful claimant must have been injured and in order to be awarded a very large sum of money the claimant must have been very seriously injured. Of course not only must the claimant have been injured they have to prove that their injuries were caused by someone else’s negligence.

 

Personal injury compensation is not a guessing game in which claimants and lawyers think of a number and try their luck. Awards are carefully calculated based on pain, suffering and loss of earnings. Despite rumours to the contrary you will not receive a small fortune for a minor injury. It just does not happen.

 

Please also bear in mind that the insurance companies employ an army of solicitors who are not about to sanction a compensation claim without a forensic level of scrutiny. This, incidentally, is the main reason why accident victims need to take independent legal advice.  

 

Assuming an accident victim is determined enough to make a claim for compensation, then the insurance company tries really hard to persuade that person to accept its first and inevitably low offer ‘in full and final settlement’. Insurance companies know the same day and often within the hour, if one of their policy holders has caused an accident and they rush to deal with the claim ASAP often before the injured party has had an opportunity to visit their GP far less consult an independent solicitor.

 

This practice, which is called ‘third party capture’ is endemic throughout the UK and was the subject of a Radio 4 investigation in 2010. Is it fair for multi-national insurance companies to put injured people under intense pressure to settle their claim in the immediate aftermath of their accident? Is this justice? You may well ask why insurance companies rush to settle claims before a personal injury solicitor gets involved.

 

Insurance companies would say that it keeps costs down by short-circuiting the legal process. We would say what about the rights of the hurt and injured to be examined by expert medical professionals and have their claim properly evaluated?    

 

If you are thinking that all personal injury solicitors are ‘ambulance chasers’ you should think about the propaganda that underpins the insurance companies’ position and the fact that it is in their interest to stigmatise both accident victims and their solicitors.

 

But what of the real stigma that rightly attaches to the insurance industry, its PR operation and its legal advisors?    

 

You may wonder who has been receiving referral fees for passing on details of accident victims.

 

One guess?

 

Correct! The insurance industry itself has been pocketing millions over the years and is now portraying its behaviour as ‘squeaky clean’. Admiral Insurance has admitted to earning over £6million per annum from road traffic accident referral fees and one has to wonder what the grand total is across the industry. Our conservative estimate is that the minimum total value of road traffic accident referral fees raked in by the insurance industry is £100 million per annum given the number of insurance companies in the UK and taking Admiral’s ‘take’ as a benchmark.

 

We have not, do not and never will pay an insurance company any money for an accident victim’s personal details. We find the whole idea repulsive as do many of our colleagues in the legal profession.

 

Can we look forward to a reduction in car insurance premiums? Don’t hold your breath but remember the quoted figure of £150 as the average annual saving UK motorists can expect as a result of ‘striking a blow’ against fraudulent compensation claims from car accident victims and their ‘ambulance chasing’ legal advisors.

 

Personally speaking, my blood is boiling at the antics of the insurance industry as it manufactures its own spurious evidence and attempts to stigmatise and disadvantage hurt and injured people at a vulnerable time in their lives.

 

Perhaps, if I look hard enough, I could find a firm of solicitors with no moral compass and no business sense who would be willing to waste their time, money and resources to help me prepare a spurious compensation claim against the insurance industry for ‘aggravated high blood pressure and associated psychological trauma’…or would that be too ridiculous?   

 

Answers on a postcard to the Association of British Insurers.