Important Changes to Employer Liability and Public Liability Procedures

The Ministry of Justice reforms: from 1st August, smaller liability claims will be dealt with by the new Claims Portal

Implications and opportunities for you and your business

The new proposals from the Ministry of Justice, that are currently planned to come into effect from 1st August 2013, will make for some sweeping changes around how you prepare your documentation relating to Employers' Liability (EL) and Public Liability (PL) claims. You need to be aware of how this affects you, your workforce and your business when it comes to EL and PL claims.

From August 2013 (technology permitting), all EL and PL claims under £25,000 in value - less some notable exceptions such as Industrial disease claims - will be dealt with by a Claims Portal.

The Portal, which is already in existence for Road Traffic Accident claims with an expected settlement under £10,000, is intended to compress the claims process and limit solicitor's costs which are so prevalent currently. Within the new proposals, an FRC (Fixed Reduced Cost) banding will be introduced for the majority of personal injury claims valued at between £1,000 and £25,000.

Under the new rules for claim management, companies would be required to respond to claimants rapidly and would also be expected to provide extensive documentation for their insurers to aid them manage the claims process and minimise costs.

However, viewed positively, these reforms could, over time, make a big impact, not just on the value of claims paid out by insurers, but the overall number of claims. Companies who adapt and improve their claims management processes under this regime will become far more attractive to insurers and potentially benefit from reduced premium costs.

Oval Insurance has worked with the FLTA to develop specialist insurance cover for members of the Association and, for the benefit of Safe User Group members like yourself, they have produced a helpful guide that makes using the Portal quick and easy.

In the link below, Oval Insurance Claims Management Executive Dominic Murphy explains how the new Claims Portal works and how you can best prepare your business for these reforms.
Download the Oval Insurance Broking Bulletin.pdf

For further legal information, you can visit the Ministry of Justice website or check out the online Claims Portal.