Jackie Hyde of Stanmore Insurance explains how the Ministry of Justice reforms and changes in the law could affect you

8th August 2013

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There have recently been some Ministry of Justice reforms and changes in the law. Jackie Hyde of Stanmore Insurance explains what these are and how they could affect you.

As an insurance broker, it is our duty to advise clients of the important changes in relevant legislation. Whilst this is a complicated issue we will endeavour to keep things simple!....

In Simple Terms, What are these reforms about?

The law in relation to handling of Employers Liability (EL) and Public Liability (PL) claims has changed with effect from 31st July 2013.
The aim of these reforms is to combat the compensation culture, make solicitors costs more proportionate and ultimately create an environment where insurers can pass on savings to customers through lower premiums.

How does this affect me as a client / policyholder and what do I have to do differently?

The format in which you receive a claim from a solicitor will change. This will now come in the form of a claims notification form.
This document MUST be acknowledged within 1 working day of receipt and sent to us immediately.
The period for insurers to investigate the claim is reduced from 90-40 days in respect of PL claims and from 90-30 days in respect of EL claims.
Payroll information relating to lost wages must be provided to your insurers within 28 days. We can provide you with a form to record this information if required.
If you do not comply with the new legislation its effectiveness will be severely reduced as the new claims portal will not operate. In simple terms, this will mean that Solicitors will still be able to dictate fees, which will in turn expose your Insurers to greater claims costs, and potentially expose you to increased insurance premiums.

If you require any further information regarding these changes please do not hesitate to get in touch with us

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