Costs are Always Passed on to the Consumer

NCD News: Costs are Always Passed on to the Consumer - 11.01.10

>> NCD News: Facebook: murder, affairs, suicide, bullying ... a real society!
>> NCD News: How many No Claims Bonus years do you have? Are you sure?
>> NCD News: Women lying about rape to claim compensation
>> NCD News: "Up to 75% No Claims Discount!" they shout ... "up to"???

Costs are Always Passed on to the Consumer: >>>> The NFU Scotland and the National Beef Association have asked the Scottish Government for funding to help farmers affected by the heavy snowfall of the past few weeks. Many farmers have experienced collapses of buildings due to the weight of snow, many of which are not covered by insurance. NFU Mutual has received more than 100 claims for damaged buildings since Wednesday. Each roof could cost as much as £30,000 to replace. In many cases, animals were at risk as the farmers had nowhere to house them during the cold weather. The Government has agreed it will do all it can to help affected farmers.

>>>> The Association of British Insurers has contacted 350 top firms in the UK and warned them not to award big bonuses this year. The letter from the Chairman comes after some banks said they will be topping up bonuses to compensate for the new 50% bonus tax. Shareholders and employees are worried they will miss out on pay rises and dividends because companies are choosing to absorb the cost of the new tax.

>>>> Judge Lord Emslie has thrown out a bid by Aviva, Axa, Zurich and RSA to change a law on asbestos cases previously passed by Scottish parliament. Those affected by pleural plaques will now have the right to sue for compensation ... again. While it has been accepted that the condition has no symptoms, those living with it have a decreased quality of life due to the knowledge they may develop lung conditions in the future. Insurance companies have estimated that these types of claims could cost them £8 billion. The ABI have said that insurers are considering whether to appeal the decision.

>>>> Research from Swinton Bikes has revealed that UK motorcyclists spend an average of two and a half hours searching for motorbike insurance. The survey of 1200 motorcyclists discovered that the time spent in 2009 was more than during 2008 by one hour. The change has been attributed to the financial pressure many policy holders are under. Anthony Aronin from Swinton commented that many people searching for bike insurance now wanted to speak to an advisor rather than relying on comparison sites.

Further Swinton research has discovered that 45% of van drivers fail to exchange personal information if they are involved in an accident with another vehicle. Swinton have put this down to drivers feeling stressed at the time of the accident and forgetting to get all the relevant details. 15% of drivers even failed to get the license plate number of the other car. Swinton point out that failing to get all the relevant details could slow down a claim or even invalidate it, if the other driver cannot be traced.

Swinton has also said that they expect home insurance claims to increase this week due to the number of schools which have been forced to close in the last week. School holidays usually dramatically increase the number of accidents in the home, such as damage to electronic equipment, sofas and carpets.

>>>> A report released by the Confederation of British Industry and PriceWaterhouseCoopers has shown that 32% of financial services businesses had increased trading volumes during the last quarter of 2009, while 28% showed a decrease. 13% of businesses expect to see further decreases during the current three month period, this is the most negative forecast for the last year. The CBI has commented that last years growth is not expected to continue into 2010 and that banks in particular could be facing a gloomy outlook. This will have repercussions for the whole sector.

>>>> The Government is expected to reveal plans to review the retirement age today. It is likely that people in the UK will not be required to stop working at 65, unless they choose to do so. Older people will also be given the right to ask for flexible working hours or the option of working from home. The change in the law will apply even to those who have already signed a contract stating they will retire at 65. The age at which the state pension can be claimed will not change. Employers have been expressing concerns and have asked for an upper cut-off age.

>>>> A Jamaican army chef serving with the Welsh guard has been awarded £22,000 after he was subjected to racist slurs by a lance corporal colleague. Kerry Hylton claimed that as well as the comment he was locked into his quarters with his family after his door was super-glued shut. He also said that he was physically attacked on one occasion. He was regularly the subject of racist comments, which were made in the presence of senior officers who made no attempt to stop it. Mr Hylton left the army following the super-glue incident and was not able to return due to a change in policy surrounding the use of foreign recruitments. His solicitors claim that this is also racist but apparently legal.

>>>> Liability risk manager of Aviva, Phil Grace, is urging businesses to take all necessary steps to prevent injury in the workplace following the recent bad weather. He says that businesses should carry out a risk assessment to work out those parts of the work environment which need treating for ice and snow. He suggests that people within the business should be nominated to have responsibility for gritting surfaces and keeping an eye on weather conditions. He also recommends that staff should be given the option of leaving work early if snow is predicted. All processes should also be properly documented just in case an insurance claim needs to be made.

>>>> Staff at Swiftcover have battled into work to help deal with the 75% increase in calls they have experienced over the last week. 90% of staff managed to get into work thanks to the company, which hired 4x4's to ferry staff to and from their homes. Other staff walked or slept in nearby hotels. Swiftcover management have praised their staff for making the effort to come into work during the busiest period of the year.

>>>> Car breakdown companies such as the AA and Green Flag have reported a huge increase in the numbers of drivers stranded after their fuel has frozen in their diesel cars. Diesel can withstand temperatures as low as minus 15 degrees Celsius. With temperatures reaching lower than that in parts of the country over the weekend, breakdown services have seen unprecedented levels.

>>>> Research from Sainsbury's Car Insurance has found that 12% of those surveyed had used their mobile phone while driving in the last month and 11% admitted to sending texts while driving. This is backed up by recent research from the Transport research Laboratory which found that more drivers are using their phones while driving than before tougher penalties were introduced two years ago. Sainbury's also discovered that 43% will eat and drink while driving and 32% drive while tired. Another 17% admit to speeding. Sainsbury's point out that any conviction for these types of offences can lead to insurance being invalid and trouble getting insurance in the future.

>>>> Aon has joined together with the Law Society in a bid to help solicitors acquire professional Indemnity Insurance. They have launched the first issue of Insurance Matters which is a free guide to the insurance market and will be published three times a year. It is hoped that the guide will help Law Society members to research the market and make more informed choices. It will also aim to guide solicitors through the renewal process. In addition to the guide, the Society will run a series of seminars and will conduct a survey on the renewal process, to judge how effective the measures have been. Many law firms failed to get insurance last year due to spiralling costs and risks and had to turn to the Law Society for cover. †