Haiti, Thalidomide and Pleural Plaques - 3 Things Insurers are Not Worried About

NCD News: Haiti, Thalidomide and Pleural Plaques - 3 Things Insurers are Not Worried About - 15.01.10

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Haiti, Thalidomide and Pleural Plaques - 3 Things Insurers are Not Worried About: >>>> The victims of the morning sickness drug thalidomide have finally received an apology from the UK government. The apology follows a £20m compensation package which was announced last month. It will be administered through a trust over the next three years. The health minister expressed the governments sincere regret and acknowledged the physical hardship suffered by the victims and their families in particular as they age. The Thalidomide Trust have said they are pleased with the apology, but that it came 50 years too late.

>>>> Insurance experts have estimated that the impact of the Haiti earthquake will be minimal as few people in the country would have had private insurance. Hanover Re has estimated a payout of 20m Euros, but appears to be the only insurer with a major loss. In addition the Caribbean Catastrophe Risk Insurance Facility, with whom Haiti had an insurance policy, will pay around US$8m which is around 20 times the country's premium and is the full policy limit. These funds should be available within 14 days.

>>>> The ABI has confirmed that insurers have lodged an appeal against the decision to allow people with pleural plaques to sue for compensation. Nick Starling from the ABI has commented that after taking legal advice the insurers consider that they have a good chance of overturning the decision. They feel that the Damages Act is flawed and ignores evidence that pleural plaques are symptomless and that damages should only be paid where physical symptoms are present. He does point out however, that this action in no way detracts from the fact the insurance industry is committed to paying compensation to anyone with an asbestos related condition which impacts on their health.

The ABI has also released figures which show that confidence in the UK economy has fallen, with one in three people surveyed at the end of last quarter, expecting the economy to worsen in the coming year. Just 39% were optimistic, down from 52% in the previous quarter. 31% were more worried abut their job prospects and 42% were prioritising their debts rather than savings. Just 17% expected to save more in the coming year, yet 37% would describe themselves as savers rather than spenders.

>>>> A Norfolk police officer has been placed under suspension after falsely claiming his Audi TT car was stolen and attempting to claim on the insurance. Simon Hood is due to appear in court on allegations of fraud. It is claimed that he worked with another man to make it appear that the car had been stolen and then made a representation to Tesco Insurance regarding claiming. His senior officers have not commented on the story while it is still in the courts. It is expected that Mr Hood will appear in court on January 20.

In another case of insurance fraud, a man from Milnsbridge has been arrested after he tried to claim insurance on more goods than were actually stolen from his home. Police have commented that while the man was a victim of burglary, it did not give him the right to commit another offence. The man has been given a police caution and will not be compensated by the insurance company for any of the stolen items. He could also have trouble getting insurance in the future.

>>>> Zurich has released a statement which explains why they need to increase their motor insurance premiums. They say they have seen a substantial rise in third party claims and bodily injury claims which has led to an unsustainable motor market ratio. Steve Lewis, CEO of Zurich General insurance said that they have seen a 30% increase in bodily injury claims and when added to inflation, this has meant an overall 50% increase in the cost of cover. They are describing the premium increase as "corrective" and they expect other insurers to do the same.

>>>> The RAC has issued a warning to motorists to watch out for potholes now that the ice and snow is thawing. Water in small holes will have expanded making the hole much bigger. Now it has thawed, a large void will be left in the road which gets worse as cars pass over it. The RAC has called for more to be spent on the problem and that councils should be working around the clock to fix holes as they are reported.

Meanwhile the AA has also warned drivers about the risk. They say that claims for damage caused by potholes has increased by 250% following last February's snow. The worst areas for potholes will be places where potholes were badly repaired in the past, roads which have not been salted and places where utility companies have carried out previous roadworks.

>>>> A woman who was injured when a shop display fell and hit her on the head and shoulders has received her compensation claim of £20,000. She now has restricted movement of her upper body which may be permanent. The money was paid for the woman's loss of earnings, pain and suffering and other costs incurred. The Occupiers Liability Act 1957 says that shop keepers are under a duty to do everything reasonable to protect their customers but getting compensation may be difficult if public liability insurance is not held by the owner of the premises, according to Hodge Jones and Allen solicitors.

>>>> The Government is considering putting to an end the requirement for losers in personal injury cases to pay the legal fees of their opponent. A report published by Lord Justice Rupert Jackson has said that general damages should increase by 10% and that referral fees paid by lawyers to the claims management companies which send them injury cases, should be eliminated. He also suggests that some types of expenses should no longer be recoverable. The proportion a lawyer may take from the amount won may also be capped at 25%, which would help protect funds particularly in medical cases. Some of these suggestions will require changes to legislation.

>>>> Aviva has issued a warning to property investors to ensure they have adequate insurance cover should their home be taken over by squatters. Mike Colmans from Aviva pointed out that getting interim possession orders is very expensive and some insurers will not pay out if correct steps to keep the property safe have not been taken. It is suggested that a landlord lets their insurer know if the house is to be empty for any period of time to ensure correct cover is in place.

It has been estimated that 88% of endowment policies held with Aviva will not be sufficient to cover the amount they were taken out for. They have admitted that the policy holders involved are in what they term as the "Red Zone" and have a high risk that they will not generate enough income, a further 8% are in "Amber" and just 4% are lucky enough to be in the "Green Zone". For those who have policies maturing now, the income from their investment will be significantly less than what it might have been 6 months or a year ago.

>>>> Specialist event insurer Hiscox has said that they have seen an increase in claims after events have been cancelled due to the recent bad weather. The closure of airports, train stations and the problems on the roads have all led to cancellations of trade fairs and seminars all over the country. Ed Pugh from Hiscox commented that cancellation insurance can offer peace of mind to event organisers, even if the event goes ahead on a limited basis.

>>>> Confused.com has been issuing warnings to their customers regarding winter insurance issues. In particular, they are suggesting that people take care to avoid the problem of rats entering the house during the cold weather. They recommend sealing gaps leading to the outside, mending drain covers, keeping outside doors and garages closed and keeping rubbish contained in a bin. They do point out that home insurance will help should the worst happen, but that individual policies may vary as to the amount of cover available for infestations.

>>>> Sheilas Wheels has revealed that it has plans to enter the travel insurance market. The product has features which will appeal to women and their families including a Holiday Hotline which can be called in an emergency. A spokesperson for Sheilas Wheels points out that while the product can be purchased by men, it is more comprehensive than a standard policy and will ensure that women travelling alone or with their families have peace of mind. †