Kevin Pallett, Aspen Insurance
A year on from the introduction of the widest ranging changes to the UK Civil Justice system since the Woolf reforms in the 1990s, the benefits for business can be significant. But too many still seem unaware of the changes and what they should be doing.
What’s in it for business is simple: lower legal costs for personal injury claims can mean lower insurance costs. For larger firms, where there are routinely incidents involving staff and members of the public, the savings can be significant.
From July 2013, employers and public liability claims were included in the Claims Portal system for the online notification of claims. The intention was to speed things up and reduce the associated legal costs, which are a significant part of the overall claims costs.
The legal cost savings can be as high as 37 per cent. This can have a significant effect on claims costs and ultimately insurance premiums. It’s working, but only where clients have acted to make sure they are taking advantage of the reforms.
In a nutshell, if businesses can work closely with their insurers, significant savings can be made if claims can be kept in the Portal because of its fast track nature and fixed costs.
The Claims Portal
The Claims Portal is an online system for personal injury claims from £1,000 to £25,000, where the legal costs are fixed at reasonable levels. If the case falls out for any reason, like a failure to comply with the strict Portal timescales, the legal costs can be up to six times higher. Ultimately then, businesses need to:
The bottom line is keeping claims within the Portal as they are settled quickly with much lower legal costs leading to lower premiums. As this involves a quick decision as to who is responsible and to what extent it is vital your insurer has all the facts to make the correct call. It’s well worth the effort.
