Compensation culture needs to stop, say accident claim insurers

After it recently emerged that accident claims for pavement slips and trips in areas of Lincolnshire and Yorkshire cost in excess of £5 million over the last four years, insurers said that the compensation culture in the UK must be put to a stop.

Due to new research conducted by the TaxPayers Alliance, 14 local authorities have had to pay out £5.01 million in personal injury compensation.  When legal fees were taken into account, the figure rose by an additional £5.5 million.

The most paid out by a single city was Leeds, who paid £1.28 million in personal injury claims, with legal fees of £1.28 million.  Second place went to Wakefield, which paid out £677,429 on compensation claims and legal fees of £635,603.

Midway down the list was Hull Council.  However, the local authority lost more money on legal fees and compensation than Lincolnshire County Council, North East Lincolnshire Council, North Lincolnshire Council, and East Riding Council combined.

While Hull Council only made a relatively modest £235,450 in compensation payments, the costs of its legal fees weighed in at an eye-watering £810,026, the research findings reported.  Like Hull Council, eight other local authorities saw their legal costs more than the amount of compensation paid to the injured, even as all 14 of them spent almost £86 million on walkway or pavement repairs.

James Dalton, the motor, property, and liability assistant director for the Association of British Insurers, called on the Government to take steps to curb compensation culture, calling it ‘out of control.’  Mr Dalton said that the Government must take action in order to bring down rocketing personal injury claims and the legal costs associated with them.

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