|
|
| Compensation Claims Pros & Cons - C4F News Archive |
The huge rise in the number of compensation claims is responsible for heavier taxes, higher insurance costs, less voluntary services, restrictions on extra-curricular school activities and even higher shopping bills as everyone tries to compensate for being a target. With all the downsides to the new "compensation culture" (you’ll all be saying it soon) – the last thing on people’s minds is the limited positive results this catastrophe has had. But, in the interests of a fair debate they must be considered:
In Manchester in 2000, it was estimated that to fix all the defects reported by the public the council would have to spend £14million in repairs. That year the council would have paid out an estimated £2million in injury compensation for not fixing them. This of course would mean lower taxes as the council saves £12million in repairs each year although this does also mean thousands of Mancunians having to put up with being injured.
With the number of claims on the rise the most recent figures show that the combined compensation payouts for the Manchester, Rochdale, Oldham, Bolton, Bury and Tameside councils for injury claims would have been £19million in 2002-2003. The increasing compensation amounts make it more cost effective for councils to actually repair the city than pay out for injuries. Some have already recognised the benefits of preventative measures such as Edinburgh Council who are "investing £10million in improving city roads and pavements and this too is a factor in reducing the number of claims.". There efforts have resulted that "the amount paid out to people injured after tripping in the streets or damaging their cars on road defects has plummeted by 81 per cent since 2000." So plus point number one - the high cost of compensation has now led to councils having reason to actually fix the roads that are injuring the public.
The cost of current compensation claims against the NHS is estimated to be in the region of £5billion with more than half of that going on legal costs. That amount is straight from the tax-payer’s pocket. Tory health spokesman John Baron suggested removing public funding for cases through legal aid saying: "Legal aid should be limited to the investigation of cases, and the conditional fee system should be used for litigation. In addressing the widespread and increasing concern at the cost and conduct of resolving disputes arising out of clinical negligence, we believe our proposals would broaden access to justice and impose commercial prudence on the legal process – and will involve only minimal changes to the law." This would obviously dampen the number of fraudulent and "frivolous" claims being pursued and cut un-necessary legal costs across the board as solicitors will be unwilling to put their hand in their own pocket to fund cases that are guaranteed to be unsuccessful. So plus point number two – increasing strain on the NHS has forced moves to take the burden of legal costs off the public and put it squarely on those facilitating the rise. Something that should have been done years ago but the government had no motivation to do so.
An industry in jeopardy by the attitude shift towards claiming is equestrian pursuits, many of which have already been put out of business due to excessive claims causing bankrupting insurance rises. To try and find a way to release the mounting pressure The British Horse Society, the Association of British Riding Schools, the British Equestrian Trades Association, and the Association of British Insurers met to discuss possible options.
Graham Cory, Chief Executive of The British Horse Society chaired the meeting and commented: "We have all seen plenty of evidence that equestrian establishments, which often work to very tight margins, may be tipped over the edge into insolvency by a substantial increase in insurance premiums … whilst riding schools will continue to face claims in the immediate future, it is clear that a more informed approach to risk management has the potential to reduce the upward pressure on premiums." This has resulted in more guidelines being produced for better management of small businesses such as riding schools so that as the number of claims are reduced so will the cost of insurance. That gives us plus point three – safer equestrian pursuits as establishments attempt to curtail the rising claims by not affording them to be created.
Our country takes great pride in its police services as being a more friendly, visible, and traditional force over our European rivals. "Police brutality" is the stuff of soap operas and rarely enters the realm of non-fiction but unfortunately for Noel Ranger, a 24 year old carer from Brimingham, his experience of the police "force" was not what the rest of us expect.
Whilst out riding his motorcycle he was flagged down by two officers " who said they were taking me down the station because I had no tax. I told them I'd only just picked up a new bike from the garage and hadn't got round to sorting out the tax. One of the officers asked me to put my arm out so he could handcuff me. I said there was no need because I'd go willingly. But they insisted and one of the officers pulled my arm right behind my back and twisted it. The pain was awful … At the station I asked to see a doctor but they put me straight in a cell … They later said that I was free to go and I wasn't charged with anything. I asked to see a police doctor again and they told me to wait at the front desk. I waited an hour but nobody turned up. In the end I called one of my brothers and he took me to the City Hospital." X-rays revealed his arm had been broken in two places requiring him to wear a cast for six weeks.
This type of case is not typical, it is an extreme with very difficult obstacles to overcome to achieve compensation. With legal aid removed from the personal injury claims sector people like Noel Ranger have to rely on the faith of local solicitors to take their case on even though the chances of winning may be slim. The introduction of no win, no fee insurance policies has dramatically increased the total cost of legal fees in this country but without them, many would not have access to justice. Which brings us to one last plus point – even though the compensation claims industry may be encouraging "too many" claims in relation to the actual number of genuinely deserving cases, without these types of organisations in place with the facilities now available many would not see justice done.
The difficult part for this country now begins as we try and pull back on the harness of the runaway claims industry whilst not infringing on those deserving of the compensation the law initially intended. - Written 24/09/04*
Other Archived Articles:
> The Meaning of the Word Accident?
> Claims: The Rising Cost to the UK?
> The Claims Management Company
> Fraudulent Claims in the UK
> Is there a Huge Rise in the Number of Claims?
> NHS Compensation Claims
*Disclaimer: This article has been marked as "archived" because, although most of the information may still be relevant, the article was written more than two years ago which may mean that some information may be outdated. Although this site is updated as often as possible the information provided may not accurately reflect the current laws, procedures and/or facilities available to you. To ensure that you get the most up to date information make sure you consult an actual solicitor before pursuing any action. The articles on this site are for informational purposes only and are not intended to advise any particular action or inaction. Please read our terms of use for more information.
|
|
