Winter Causing Excess Claims, Insurers Spend their time asking about Marital Problems

NCD News: Winter Causing Excess Claims, Insurers Spend their time asking about Marital Problems - 08.01.10

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Winter Causing Excess Claims, Insurers Spend their time asking about Marital Problems: >>>> The Association of British Insurers has issued guidelines for motorists during the bad weather this winter. This follows the revelation that 27 cars had been stolen in Lancashire in just two hours, after being left unattended while the drivers allowed them to warm up and de-ice. The ABI suggests that drivers remain inside their cars while they are warmed up and never to leave it unattended with the keys inside.

Meanwhile the RAC has issued a list of essentials to carry inside the car while travelling through the snow, as well as a check-list for keeping the car properly maintained in the winter. They suggest keeping a battery charger in the car, buying a de-icing product and checking tread depths. They also recommend carrying an ice scraper, a first aid kit, a torch and blankets. A hot drink and some food are also worthwhile.

>>>> Halifax Home Insurance has also issued warnings to its customers to protect their homes after one in six of its home insurance claims in the last two weeks related to burst pipes. The usual figure for December is just one in ten. With the average cost of repairing damage caused by a burst pipe at around £2000, the insurer is urging home-owners to take precautions such as leaving heating on low, insulating pipes and making themselves aware of how to turn the water off in an emergency.

Other insurers have also been experiencing increases in the numbers of calls during the last few days according to The Independant. More Than has reported 50% more claims than usual for the time of the year. Most of these related to the cold weather, in particular car accidents and burst pipes. Aviva has seen a 30% increase in the number of motor insurance claims, but had not experienced a rise in burst water pipe claims as yet. They had however received calls relating to falling ice and the weight of snow on guttering. The AA said they were receiving around a third more calls than usual, but this was less than expected as people were not venturing out in the snow. Axa has experienced a 10% increase in motor claims and Swiftcover has had a 76% increase in claims in the last 3 days. Finally Swinton has said that they had received a record number of calls in the last 7 days.

>>>> Virgin Money has finally announced its plans to move into retail banking after many months of speculation. It has entered into a £50m deal to buy Church House Trust, which has been agreed by both the current Church House Trust shareholders and the FSA. Richard Branson has commented today that he wishes to bring simplicity back to the banking sector. Church House Trust was targeted as it has more deposits than loans and a conservative business model. It is expected that Virgin will become a serious player in the banking market and could challenge some of the larger banks.

>>>> The ABI has ended its agreement with the British Medical Association on fees for medical reports and examinations. The rates currently sit at £89 per report which was due to continue until March 2011. The decision to end the agreement could lead to increased charges and therefore increased premiums for health insurance customers. The ABI says that the change means that members are no longer obliged to use agreed fees and can work in a more competitive market.

>>>> Aviva has joined together with cricketer Phil Tuffnell and is asking for sports fans to send in videos of the "away day" antics. This comes on the heels of the popularity of their Paul Whitehouse ad featuring him and group of friends during a trip to Plymouth to watch their team play. Aviva are offering a prize of £1500 to whoever sends in the best video, plus weekly prizes of £1000. Tuffnell, who will be launching the campaign, said that often the trip to see your team play is often more entertaining than the game itself. Meanwhile Aviva are also offering football fans an extra incentive to take insurance from them. They are giving away an extra two months free on a car insurance policy and offering the chance to win a £1500 season ticket. It is available to drivers with 4 years or more no claims.

Aviva has purchased American fund manager River Road in a bid to expand its asset management business. River Road currently has $3.6bn worth of assets under management and has an impressive track record according to Alain Dromer the Aviva Investors Chief Executive. He hopes that the acquisition will allow Aviva to increase their third party institutional business and provide a broader range of investments. The acquisition should be completed by the end of the first quarter 2010.

>>>> The FSA has decided to oversee development and qualifications internally and abandon the independent professional standards board. The news has been met with a mixed response from financial institutions. Steve Gay from Aviva has expressed disappointment and said that an independent board would drive professionalism and promote trust in the industry. While Victoria Nye from the Investment Management Association has commented that the FSA's intention of working more closely with professional bodies and the new standards will provide a strong framework and build consumer confidence.

>>>> The Financial Services Compensation Scheme has changed its compensation limits this week and not in favour of those with insurance. For those buying non-compulsory insurance, the maximum which can be claimed from an insurance company which goes bust, will drop from 100% (if the claim is for less than £2000) to 90% of the total. The limits for compulsory insurances will remain at 100% of the total. These changes also apply to those who receive bad advice from an insurer. However those who receive poor mortgage advice could receive £50,000 rather than the previous £48,000.

>>>> A survey by eSure has claimed that couples spend around 40 minutes a day arguing about housework. 13% will argue at least once a day and 20% spend one day a year not talking due to domestic squabbles. Leaving clothes strewn around annoyed 35% of the 1000 people surveyed and 28% argued about not doing home improvements. One in seven people said they often lie to their partner about why the housework was not done, using work, children and pets as excuses for messes. Mike Pickard from eSure commented that while these things may not seem important, arguments about housework can lead to problems in even the most stable relationships. eSure's credentials as marriage counsellors are ... well, non-existent. But hey, they've got their name in print so maybe you should buy insurance from them! They obviously invest the money well.

>>>> According to research by Mactavish in collaboration with PriceWaterhouseCoopers, UK commercial insurers could be facing a time bomb due to businesses taking on more risk in the recession. Manufacturing, construction and retail businesses have all taken on extra risk to cut costs, some by outsourcing to Asia. The report states that insurance brokers and insurers are not always aware of the changes made by those whom the insure. This means that some insurances could be under-priced. Some 65% of companies do not review their risk strategies and how it might affect their insurance.

>>>> Jackie Fletcher is the first person in the UK to be granted legal aid to claim compensation from a Vaccine Damage Payment Unit tribunal on behalf of her son. Mrs Fletcher's son is now 18, but it is claimed that he was severely affected by the MMR vaccine as a toddler. Her claim for compensation initially ended in 2007 after it was discovered her legal team had been pursuing the wrong drug company due to an error by a nurse. This caused the family to miss the time window available to sue to true drug company, Merck. Despite no link being found between the MMR and autism, the Fletcher's feel positive the tribunal may offer a good result. The most they can expect to receive in compensation is £90,000, some of which will have to be used to pay for the legal aid. †