Law & Practice : The UK Perspective Vilnius, 22 nd October 2010
Van Ameyde UK Richard Temp Operations Manager
BACKGROUND SOME FACTS & FIGURES Established in England in 1973 VA UK comprises of two UK sites Bromley (England), Edinburgh (Scotland) 40 Claims handlers across both sites More than 300 Insurance Clients 3M Pound turnover Independent of any equity interest from any UK financial Services
Company Structure (International Claims) Van Ameyde UK Operation Management Technical Claims Management Finance Management Logistical Support International Claims Department Finance Department
Products Business lines Green Card Direct Networking ECS (European Claims Service) Local Business (Travel & PA, EL, PL, Motor)
Business Practice
FOCUS Business Practice Disaster Recovery Contingency Plan (Tested annually) Professional Indemnity Insurance Staff Instructed on: Data Protection Act The protection of an individuals personal data Money Laundering Protocol To identify potentially fraudulent financial transactions relating to organised crime Health & Safety Directive To ensure the safety and welfare of staff
Staff Training & Experience
CONTINUOUS INVESTMENT & DEVELOPMENT 14 Years average experience largely in Composite Insurance Market Evaluation of staff twice per year in the form of Appraisals Training Internal training provided by Mentors and regular External training from leading experts Task & Target based workflow Productivity measurement with focus on quality Limits of Authority/Referral based on experience and regular auditing
Intelligent Claims Handling Activity work flow system (ECHO) Client portal access through Intranet Informative/functional Management Information Clear concise financial information Jurisdictional/Technical issues clearly explained Access to Legal/Technical experts
Law & Practice Paul Lavelle Claims Manager
2001/2008 (MIB) UK Claims comparison (increased volumes) 2008 Ranking Country Code Country 2001 2008 Difference %age change 1 LT Lithuania 1 716 715 71500% 2 SK Slovak Republic 22 578 556 2527% 3 BIH Bosnia Herzegovina 4 42 38 950% 4 LV Latvia 11 109 98 891% 5 PL Poland 361 3,436 3,075 852% 6 RO Romania 76 567 491 646% 7 MK F Y R O M 6 44 38 633% 8 H Hungary 192 840 648 338% 9 IRL Ireland 128 452 324 253% 10 CZ Czech Republic 250 859 609 244%
UK Jurisdictions England and Wales: Applies to accidents occurring in England and Wales or when a Defendant resides in England or Wales. Involves 88% of the UK population (53million). Scotland: Applies to accidents occurring in Scotland or when a Defendant resides in Scotland. Involves 8.5% of the UK population (5 million). Northern Ireland: Applies to accidents occurring in Northern Ireland or when a Defendant resides in Northern Ireland. Involves 3.5% of the UK population (2 million).
Basis of Common Law English law adopts an adversarial system. Common Law A system of law that is derived from Judges decisions rather than statute. Statute Written law to which a Court refers, the interpretation of which is aided by reference to the Common Law. Precedent The reason for a decision will bind future cases based on the same generic set of facts.
Compulsory Third Party Insurance Primary Law Under s.143 Road Traffic Act 1988 A person must not use a motor vehicle without at least third party insurance. The Law applies to any driver and any motor vehicle used on a public road with some exceptions i.e. some government vehicles, military vehicles; many small electric vehicles Minimum RTA Indemnities These follow the European rules set out in the Fifth Motor Insurance Directive 2005/14/EC
Limitation Periods Statute: (i) England & Wales Limitation Act 1980 (ii) Scotland Prescription and Limitation (Scotland) Act 1973 Material Damage (i) 6 years in England & Wales and Northern Ireland (ii) 5 years in Scotland Bodily Injury 3 years in all jurisdictions Time runs from the date on which the cause of action accrued or the date of knowledge (If later) of the person injured Exceptions: Children/Industrial Disease
Proof of Fault Legal Burden The burden of proof rests on the Claimant unless liability is conceded by the Defendant. Balance of probabilities The Claimant is required to prove a fact on the balance of probabilities (i.e.51% or greater): This is a much lesser burden than in criminal law where a Judge must be persuaded beyond reasonable doubt.
Persuasive Evidence Police Reports Legal obligation for drivers to exchange details (RTA) In Damage only claims reports are rarely filed unlike other EU jurisdictions. A Police Report may be available where there are reported injuries at the scene and the report may contain brief statements from witnesses Scottish Police Officers must be precognised (interviewed)
Witness Evidence Role of witnesses Independent The evidence of an independent witness will carry more weight than the evidence of a non independent witness. Non Independent A non independent witness could be a relative/work colleague / friend. This will carry less weight as they are considered potentially biased. Insured / Driver as Witness The court is usually unhappy to decide a case on the uncorroborative evidence of a driver.
Witnesses at Trial In our adversarial system a party has the right to cross examine witnesses Attendance at Trial is important and essential as for the driver CPR 32/ The Civil Evidence Act 1995 states witnesses whose statements have been submitted by the parties must be called to give oral evidence unless the Court permits as Hearsay Evidence Credibility will be decided by the Judge
Civil Procedure Rules The Civil Procedure Rules 1998 (the CPR ) apply to all proceedings in the county courts, High Court and the civil division of the Court of Appeal. Introduced in order to improve the efficiency and pace with which cases were dealt by the Courts. The Rules are accompanied by Practice Directions which provide fuller explanations of the Rules. There are strict timescales to be followed by the parties to avoid potential cost penalties.
Is the UK an expensive jursdiction? Probably second highest awards for bodily Injury (after Southern Ireland) Credit Hire and Credit Repairs Legal Costs State Subrogated Claims (Hospital Charges, Ambulance Costs) Fraud
Bodily Injury General Damages for Pain, Suffering and Loss of Amenity will be presumed to have resulted from the Defendant s acts and may include damages for pain, inconvenience and generally need not be specifically pleaded. Judicial Studies Board Guidelines (JSB) These are guidelines prepared by a panel of Judges and lawyers for the assistance of Judges in valuing damages for bodily injuries. They set guidelines for the awards in a bracket depending on the type of injury suffered.
JSB Examples A minor soft tissue injury to the neck whiplash with a full recovery up to 2 years: 2,850-5,150 A minor back injury largely recovered within 5 years 5150-8,250 A below knee amputation of one leg 60,000-86,000 Quadriplegia 212,500-265,000 Very severe brain damage 185,000-265,000
Legal Costs General Rule: The loser pays the winner s costs (the indemnity principle) On average, for every 1 paid in compensation to a Claimant, an additional 42 pence is paid in legal costs. In claims under 5,000, for every 1 paid in personal injury compensation, claimant lawyers receive an additional 88 pence in legal costs for motor claims Conditional Fee Arrangement ( No Win No Fee ) Legal fees can attract an uplift of up to 100% After the Event Insurance Indemnity against the risk of losing the case
Legal Costs Cont.. Small Claims Track (< 1,000 bodily injury and < 5,000 Property Damage) Modest fixed costs apply for issuing Court Documents otherwise no costs are recoverable. Fast Track (Up to 25,000) - Lawyers will charge an hourly rate depending upon the County Court. Limited Trial Costs Multi-Track (> 25,000) Usually High Court cases. Hourly rates charged.
Legal Costs cont Under CPR 45 Predictive Costs are applied to bodily injury claims arising from Road Traffic Accidents < 10,000 (total claim) 800 + 20% of the damages agreed up to 5,000 and 15% of the damages agreed between 5,000 10,000 12½% success fee (if applicable) Disbursements pursuant to 45.10(2) VAT
Credit Hire Credit Hire Organizations provide hire vehicles to Claimants on a deferred payment basis Rates, historically, have been high as they include credit and services to the hirer Like for Like replacement vehicles are permitted
Fraud Cash for Crash claims Staged Accidents Costing Insures 350M in 2009 (IFB) Ghost Claimants Exaggerated Claims, Low Velocity Impact, Whiplash 432,000 whiplash claims each year (IFB)
Managing Claims Costs Robust and thorough (early) liability investigation Witnesses/Police evidence/locus Report/Investigators Credit Hire Investigation Mitigation/Hire Rates/Necessity/Legality Fraud Databases MIAFTR (UK vehicles)/cue PI (Personal Injury)/Networked Supplier Databases Injury Investigation Medical Experts/Surveillance
Ethos Investigation Prospects of success Focused Claims Handling Saving money!
Further Information Managing Director David Wilson +44 208 315 0717 D.wilson@vanameyde.co.uk Claims Manager Paul Lavelle +44 208 315 0717 P.lavelle@vanameyde.co.uk Operations Manager Richard Temp +44 208 315 0718 R.temp@vanameyde.co.uk
Thank You for listening