Compensation Policy Last updated: December 2014 Date created: 2006 Version number: 9 Equality Impact Initial screening date January 2009 Result of screening Low Review date: May 2016 Document owner: Head of Customer Service 1. Scope 1.1 This policy outlines the circumstances in which Moat s customers may be entitled to compensation. 1.2 The term customers in this policy includes customers of rented properties, shared owners, leaseholders, freeholders and applicants for housing unless stated otherwise. 1.3 Details of the amount of compensation payable in different situations are included. 2. Aims and objectives 2.1 The aims of the policy are to ensure that: Customers receive a fair and efficient settlement where compensation claims are valid. Moat meets its legal obligations on compensation claims. 3. Statutory / regulatory issues 3.1 The Right to Repair scheme allows housing association customers to claim compensation under Right to Repair. 3.2 The HCA s Regulatory Framework makes it a requirement that customers, housing applicants and others have ready access to an effective complaints and compensation policy, administered effectively. 4. Policy statement 4.1 Moat will consider paying compensation to customers in the following cases: If a qualifying repair is not completed within a given time scale (Right to Repair). Loss of amenities. Additional costs incurred for alternative heating and dehumidifiers. Missed appointments.
Damage to a resident s property and/or decorations. Time and trouble payments in the case of service failure. 4.3 To expedite the resolution of complaints at first point of contact Customer Service Advisors are empowered to resolve and issue gestures up to the value of 25 in consultation with their Team Leader. 5. Exceptions to the Compensation Policy and Procedure 5.1 Moat will not pay compensation for: Short term nuisance caused by building works. Neighbour nuisance. Stress following any incident or failure of service. Loss of earnings. 5.2 The policy does not cover: Personal injury claims. Decants or temporary moves. Service charge refunds. Where a service has been paid for but not received, these claims will be referred to the Service Charge Team. Improvements to the home by customers please refer to the Right to Improve Policy. New properties during the defects period. Disrepair claims. 5.3 Where a resident starts legal action against Moat the compensation policy and procedure will no longer apply and these cases will be dealt with on an individual basis. 5.4 Where a person does not receive a service from Moat but is affected by our actions, or lack of action, these claims will be assessed on an individual basis. 6. Right to Repair (Compensation for repairs that affect health and safety and security) 6.1 Moat aims to complete repair work to publicised time scales and with minimum disruption to customers. 6.2 If we fail to complete a repair within the time scale given to the resident, we will rearrange the repair within a second time scale, equivalent to the first, and this will be agreed with the resident. 6.3 If the repair is not completed within the revised time scale, secure and assured customers may be entitled to claim compensation as outlined in the Right to Repair scheme. A list of qualifying repairs is given in Appendix A. 6.4 Compensation payments will only be made if the conditions outlined in the Compensation and Right to Repair policies are met.
6.5 All of the following conditions must be met for the resident to be eligible for Right to Repair compensation: It must be an emergency or urgent repair that affects health, safety or security of the resident see appendix A for a list of qualifying repairs. Moat must be responsible for the repair. The value of the repair must be less than 250. Compensation is payable where the housing association has failed to carry out a repair in the target time and has failed to do so again after a further request is made by the resident. 6.6 Compensation will not be payable if any of the following conditions apply: The repair was needed because of damage caused by the resident. The resident had not informed Moat that the repair was needed. The resident failed to provide access or make an appointment with the Contractor. It was not an emergency or urgent repair Moat was not responsible for the repair Contractor could not obtain the necessary parts to complete the work or additional work is required and the resident has been advised of the situation Contractor has attended and made safe or limited further damage Contractor has been unable to complete the works for reasons of health and safety 6.7 The amount of compensation payable under Right to Repair is a statutory right. Customers can claim a one off payment of 10. They can also claim a further 2 per day for each day the repair remains outstanding up to a maximum of 50. 7. Loss of Amenities 7.1 Customers may be entitled to compensation if any part of the dwelling, or its major amenities, are unusable by the resident as a result of delayed repairs or major building works. 7.2 The amount of compensation payable is dependent on the amenity lost and is detailed in the compensation procedure. 7.3 Compensation for loss of a room or amenity is available as follows for each week the dwelling / amenity is unavailable: Amenity lost Complete loss of heating Hot Water System Compensation payable 10% of the weekly rent after 24 hours provided no reasonable substitute was offered by Moat. Compensation for loss of heating is excluded between 1 June and 30 September. In some exceptional circumstances this period may be reduced. 10% of the weekly rent after 24 hours provided no
Complete loss of Kitchen Complete loss of bathroom Living Area Bedrooms reasonable substitute was offered by Moat. 25% of the weekly rent after 48 hours Where a resident loses complete use of their kitchen, in cases of financial hardship, vulnerable customers and customers with families, Moat will consider paying an allowance to contribute towards the cost of meals and drinking water. 25% of the weekly rent after 48 hours (reduced to 15% if a separate WC is available) 20% of the weekly rent after 7 days 20% of the weekly rent after 7 days 7.4 Where reference is made above to weekly rent, this means basic rent only (it may not be the actual weekly rent payment as this may include payments you make for other services you receive). 7.5 Where programmed maintenance works have been pre-arranged and advance notification has been given to the resident allowing alternative arrangements to be made, the periods for loss of bathroom / kitchen will be increased to 96 hours. 8. Alternative Heating and Dehumidifiers 8.1 In some circumstances Moat may need to provide the resident with a temporary source of heating or a dehumidifier which incurs additional costs to the resident. Loss of water heating resulting in the increased usage of immersion heating will also be reimbursed. Moat will compensate customers in these circumstances. 8.2 Compensation rates for alternative heating will be calculated on a daily basis at the following rates: Alternative heating Loss of space heating and use of 2 temporary heaters Loss of water heating and increased use of immersion heater Use of dehumidifier Compensation paid 4.00 per day 3.00 per day 3.00 per day 8.3 Where a claim is made for increased costs in utilities usage, the officer assessing the claim must ask for evidence of the resident s usual costs from previous heating or other utility bills, as well as evidence of the increased usage and costs.
9. Missed appointments 9.1 If Moat, or its contractors break an appointment without giving the resident reasonable notice (two working days), the resident can claim a one-off payment of 20. Moat does not compensate for loss of earnings. 10. Damage to a resident s property or decorations 10.1 Customers are responsible for arranging their own home contents insurance. 10.2 Moat will only consider compensation claims if damage to a customer s property or decoration has occurred as a result of failure to repair. If Moat has met its service standards on repairs, claims for compensation will not be considered. 10.3 Customers are responsible for damage due to their own negligence. Moat will not consider compensation claims if damage has occurred as a result of disrepair where it is proven that Moat had not been negligent or breached the terms of the tenancy agreement. Moat will not be considered negligent if it could not have foreseen that the repair was needed. The resident should be advised to direct their claim against their home contents insurance. 10.4 If a contractor causes damage to a customer s property, Moat will refer the matter to the contractor. Moat will try to ensure that the contractor reaches a fair and reasonable settlement with the resident. 10.5 If a resident s decorations are damaged as a result of a delayed repair or whilst in the process of carrying out a repair every effort should be made to match existing decorations. Where decorations cannot be matched by Moat and its contractor a decoration pack will be provided. Staff will need to refer to the Customer Mobility decoration pack specifications. Staff have discretion to offer a direct payment instead of a decorating pack where relevant. 10.6 If the resident claims compensation for damage caused by failure to carry out a repair within the published time scale a technical officer or supervisor should visit the resident within 14 days. The technical officer will assess the damage or loss incurred and whether the damage is due to a service failure by Moat and report this to the lead officer for the claim who will instruct on how to proceed. 10.7 Any compensation payable will be dependent upon the value of the items damaged. Photographic evidence should accompany the claim together with relevant receipts wherever possible. 10.8 Claims up to a value of 999 must be submitted to Moat on a compensation claim form. Claims of 1,000 or more will be submitted to Moat s insurers to consider. The insurers will settle directly with the resident if the claim is approved.
11. Time and trouble payments for service failures 11.1 We will consider claims for compensation where customers have suffered a material loss through time and trouble spent trying to resolve service failures. 11.2 Compensation can be awarded up to a maximum of 150 and should include the cost of telephone calls, visits, postage and time spent resolving issues. 11.3 The amount of compensation awarded is discretionary. 12.0 Deductions of outstanding debts to Moat 12.1 Any amount owed to Moat by the resident by way of rent arrears, outstanding service charges or sundry debts will be deducted from compensation payments made. The amount will be calculated and a credit made to the relevant rent account, service charge or sundry debt account. 12.2 Where a payment is made to cover material loss incurred by the resident these reimbursement claims will be paid directly to the resident and not offset against any arrears position. 12.3 Claims against third parties. Where we receive a claim against a third party, such as a contractor working on our behalf, we will actively enforce any contractual provisions and, where appropriate, pursue the claim on the customers behalf. Complaints and claims against contractors will be monitored to identify trends. 13.0 How to Claim 13.1 For claims to be considered, details must be received by Moat in writing within 31 days of the event that caused the loss or damage. Failure to make a compensation request in this timescale may result in Moat not being able to consider the claim further without evidence of extenuating circumstances. 13.2 You can write to us, email us or request a copy of the Compensation claim form from the Customer Service Centre. 13.3 When reviewing claims for compensation we will take into account the effects of the actions of the claimant i.e. if they have failed to allow us or our contractors to undertake remedial works deemed necessary, which ultimately causes further problems/damage to property. 14.0 Right to appeal 14.1 All claimants have the right to appeal if they disagree with the settlement offered in accordance with Moat s Complaints Policy. Customers should set out their reasons for not accepting the offer and where this is not agreed by the investigating officer, the claim will be escalated to the next stage in accordance with the complaints policy and procedure.
15.0 Responsibility and monitoring arrangements 15.1 All compensation awards must be authorised by the Head of Customer Service Centre. In calculating payments all staff will refer to this policy to ensure a fair and consistent approach to all when compensation payments are being considered. 15.2 The exception to this is where a Stage 3 panel (Complaints procedure) may need to offer a payment as part of the recommended resolution. The Stage 3 Panel has the authority to offer reasonable compensation but should always outline how this has been calculated. 15.3 It is the responsibility of operational managers to ensure compliance with this policy, the relevant procedures and to act as a role model for their staff in demonstrating how it should be implemented in day to day operations. 16. Equality and diversity statement 16.1 Moat values diversity and is committed to promoting equality of opportunity and ensuring that customers and staff are treated fairly. It is Moat s policy to ensure fairness, accessibility and transparency in every aspect of its work. 16.2 The information in this document can be provided in other formats, including large print, on audio tape and electronic versions. Please contact Moat to see if this document is available in a format more suitable to your needs. 16.3 Moat uses Language Line, a telephone interpreter service which can be accessed by Moat staff to assist when communicating with customers whose first language is not English.
Record of changes Date of change Details of change January 2015 Removal of a new appointment is not available within seven working days. December 2014 Incorporated resident comments re: access to Language Line Updated date of policy review to Dec 14 November 2014 Reviewed amounts for loss of amenities Changed decoration allowance procedure Reviewed in line with revised Complaints Policy Amended Regulatory Code to HCA s Regulatory Framework Amended Equalities section to mirror complaints policy Amended residents to customers June 2014 Split policy and procedure Ensured clarity around level / amount payable for categories of compensation Stated that Stage 3 panel awards should set out how calculated Amended amounts for additional costs for temporary heaters etc. May 2010 Removal of improvements to the home by residents to be included in Residents Right to Improve Policy and Procedure Front line officers empowered to offer compensation to the value of 25 in consultation with Team Leader Proactive leaflet being produced to be handed out when dehumidifiers or temporary heating is given to residents to make process fair and quick Defined our meaning of weekly rent Missed appointments replaces economic loss and policy clearer that Moat will not pay for loss of earnings Added making telephone contact with resident in to mirror our Complaints P&P Combined damage to residents property and decoration T&T payment increased to maximum of 150 Reviewed and increased compensation payment for temporary heaters, dehumidifiers and increased use of immersion heater Included taking account of claimant s actions that may have had an effect on the claim. Included room decoration allowance Introduction of BACS payment facility Replicated repair priority and right to repair information from resident handbook October 2009 Amendments to internal process for assessment and authorisation to accommodate the Proactis system May 2009 Clarity provided or the purposes of offsetting against arrears Timescales introduced for responding to claims Updated in accordance with revised Right to Repair and Right to Improve procedures
Updated to include authorisation of payments Daily rates amended November 2008 Document amended to include new procedure for authorising payments Document amended to include equalities impact assessment 8 January 2007 Scope amended to state procedure applies only to the Housing and Customer Services Directorate. Supported Housing added to the procedure. 2 January 2007 Reference to inspection by a housing officer removed from compensation claim form (appendix C). July 2006 Inclusion of time and trouble payments in the event of service failures. Changed role of housing officers, surveyors and customer service advisors in assessing claims. Procedure widened to include shared owners. Timeframe for responding to claims changed in line with complaints procedure. More detail added on the situations when Moat will consider paying compensation. Details on who can claim for improvements to property have been updated. Improving resident can claim compensation on mutual exchange.
APPENDIX A Priorities for repair The following tables show the types of repair Moat must do and the priority we give them. Repairs that qualify under the Right to Repair are marked RTR. Please note that not all emergency repairs qualify as RTR, only those identified under the Right to Repair Scheme. If a repair is considered to be an emergency, and if it is a resident s responsibility to do it, then the resident will have to pay for it. Priority Timescale Type of Repair Emergency (out of hours) Contractor will come within four hours to make safe. Repairs ordered outside office hours where there is immediate danger to people or property. The repairs will usually be to make the situation safe Emergency (daytime) Urgent Routine Programmed Contractor will do the repair within 24 hours and prioritise within this timescale where there is real danger. Complete within seven calendar days Complete within 30 calendar days Complete within an agreed timescale only. Repairs ordered during office hours where this is immediate danger to people or property. Repairs that are not considered an emergency, but which if not completed quickly would cause significant nuisance. Repairs that Moat is responsible for that are not considered an emergency or urgent. Repairs that are complex, subject to leaseholder consultation, or involve specialist parts or works.
Emergency Type of Repair Total loss of electrical power Unsafe power or light socket or electrical fitting Total loss of water Total or partial loss of gas supply Blocked boiler flue Total or partial loss of space or water heating between 1 November and 30 April. Blocked or leaking foul drain, soil stack or toilet pan. Toilet not flushing Leaking water or heating pipe, tank or cistern Insecure window or door Making safe dangerous structures Security work to dwellings following confirmed reports of harassment Securing empty homes Lift breakdowns Lighting in communal area Example or explanation No power in the home. RTR Bare wires exposed, socket sparking or smoking. RTR No water in the home (but not where the supply company has shut off the supply). RTR Loss of gas supply (but not where the supply company has shut off the supply). RTR Flue blocked by something such as a plant growth. RTR No heating, no hot water or both. RTR Sewer drain backing up or blocked soil pipe. This only qualifies as RTR if there is no other working toilet in your home and it is not caused by misuse. Where a toilet cannot be flushed, for example due to blockage. This only qualifies as RTR if there is not other working toilet in your home and it is not caused by misuse. Leak from a water supply pipe or storage tank. RTR The home is insecure, for example due to a broken window or damaged door. If the damage was caused by a crime you must call the police first, as we are unable to order a repair until you have a crime reference number. RTR. Making ceilings safe if they are in danger of falling down. Security work as part of our policy to prevent harassment. Preventing unauthorised occupation. Getting a lift working again where it is the only lift (but not where shutting down a lift has been planned or a major repair is needed. Repairing lights in a communal area.
Urgent Type of repair Partial loss of electrical power Partial loss of water Total or partial loss of space or water heating (between 1 May and 31 October) Blocked basin, bath or sink Tap that cannot be turned Loose or detached banister or handrail Rotten timber flooring or stair tread Roof leak Repair of mechanical extractor fan Repair of door entryphone equipment Reconnecting electrics following water leaks Repairing an intermittent water leak Reglazing of windows Replacing a toilet pan Replacing a broken tap Examples or explanation No power to one room only. RTR Loss of water to one room only. RTR No heating, no hot water or both. RTR Water not draining away. The Resident must also have tried to unblock it first. This only qualifies as RTR if it is not caused by misuse. Tap stuck on or off. RTR Loose or insecure banister in your home. This only qualifies as RTR if it is not caused by misuse. Rotten floorboards or stair treads are only classed as urgent if they are a health and safety concern. RTR Temporary repair to make safe and stop leak. RTR In kitchen or bathroom and only where there is no window to ventilate. RTR Repair to entryphone handset in a home. RTR Where a lighting circuit was disconnected because of water damage. For example, a leak that only happens when a sink is emptied. Putting new glass in a boarded-up window (but only when it is Moat responsibility). Replacing a cracked or broken toilet pan (but only when it is Moat responsibility). Replacing a broken tap that cannot be repaired.