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Insurance and legal roundup; fight over MOJ portal reignites

“It’s great, and so are we” say the insurers. “The system’s being abused and they’re taking advantage of it,” say the lawyers. Well which is it? Two very different angles about the the MOJ portal appear in today’s Post Mag and Law Soc Gazette.

“It’s great, and so are we” say the insurers. “The system’s being abused and they’re taking advantage of it,” say the lawyers. Well which is it? Two very different angles about the the MOJ portal appear in today’s Post Mag and Law Soc Gazette.

Post Magazine: Majority wants MoJ RTA portal limit extended to £25 000

Allianz has proven the key to good PR is letting some journos see some stats. The insurer has put about 80% of its possible MOJ fast track claims up to 13th Sept, through the system according to one of their many claims gurus, Roy Hebburn at an event last week. This news was seen as a good opportunity to put a question to the audience in an interactive vote. In response, 60% of insurers said they want an extention of the fast track PI claims process, while 21% said no. The remainder weren’t sure. 

Law Society Gazette: Insurers accused of ‘abusing’ RTA scheme

Perhaps the insurance trade press and the legal press should just go head to head themselves. James Dean’s article on the progress of the MOJ portal paints a very different picture of how things are shaping up. He’s using the Motor Accident Solicitors Society (which has been busy quelling ‘myths’ about the compensation culture for weeks/years/forever) as his source to report that “insurers are instructing their own panel firms to submit victims’ claims to them throught he portal – even where the victim has already chosen another firm to represent them.” In addition to accusations that insurers were “repeatedly failing to respond to claims within the timescales laid down by the MOJ”, MASS said it was going to file complaints to the Solicitors Regulation Authority and the portal administrators if the ‘abuses’ become widespread.

Interestingly, he said he already had ‘anecdotal’ evidence of the abuse. I heard an anecdote once. It was rubbish.

Post Magazine: Lord Young rebuffs Arag and promises action

Ever the politician, Lord Young has spoken directly to the trade press this week and emphasised that ‘the other lot’ are not running the show any more. He seems to be up for a scrap as he namedrops LEI insurer Arag which accused him the week before of creating the report to make political gains.

Post Magazine: Premium increases not claims farming solution

Martin Milliner, head of operational claims at LV= was scratching around for an answer to that which has so vexed Lord Young, above. However he did make some (not necessarily new) suggestions outside of saying, ‘ner ner, we’re in charge now so you can’t play any more’. Central to Milliner’s suggestions were options such as whether injury claimants should be dealt with by their own insurer; “should there be a fixed tarrif on damages? We are not evenly matched. Insurers have to roll with the punches, the legislation is too thin and the controls around claims farming are too weak,” he said. He couldn’t resist a small battle cry though – “for me the war is only just beginning.”

 

About Ralph Savage (138 Articles)
Insurance and legal journalist Ralph Savage has written extensively for the financial and professional services sectors, most notably as News Editor of Post Magazine. He ghost writes regularly on behalf of FTSE 250 CEOs, leading counsel and senior professionals including solicitors, insurers, accountants and brokers.

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