Press Release

Government personal injury reform proposals are a missed oportunity

Monday, July 21 2008

The Government's long-awaited proposals for reform of personal injury compensation fail to grasp the need for radical reform, the ABI (Association of British Insurers) and the EEF, the manufacturers’ organisation, said today. Both organisations had made detailed proposals to speed up and simplify the current system.

Stephen Haddrill, the ABI's Director General, said, "The goal of reform must be a better deal for claimants. These proposals can only be the start of a programme of much-needed reform. Many claimants will remain stuck in a slow, complex and expensive system, that denies them speedy compensation and care.
"Even the motor reforms do not go far enough, and will only have a small impact on the 10% of motor insurance premiums that are swallowed up in legal costs. And the exclusion of workplace-related claims, which take on average three years to settle, is illogical and bizarre. Trade union pressure must not be allowed to block change."

Gary Booton, EEF Director of Health, Safety & Environment, said, "By not going far enough in reforming the current system the cost of settling claims will remain excessive. The opportunity was there with these reforms to put in place a system which would see the speedy and efficient settlement of claims. Today’s announcement serves neither the employer or the employee."

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