Leading high street stores have joined forces to try and rid the UK of the personal injury compensation culture that has sprung up in recent years.
Since 2002, the number of personal injury claims has nearly doubled as people lodge claims for trivial incidents. The cost to consumers, businesses and insurers carries on increasing which results in higher insurance premiums and higher costs in the shops. In just one year, the NHS had to pay more than a quarter of a billion pounds in legal fees arising from personal injury claims.
Industry giants such as ASDA, Lloyds of London and Ford have united to form the ‘Consortium for Compensation Reform’.
Otto Thorenson, the director general of the Association of British Insurers, said genuine claimants are being failed by the current litigation system and yet they are the very people the system should protect.
Insurers, local authorities and retailers are committed to recompensing genuine claimants as soon as possible but all too often this is done despite the system rather than because of it. Claimants can receive more money quicker of they claim directly from insurance companies, but ambulance chasing personal injury solicitors still manage to manipulate the system.
He went on to explain that the position is reversible and we must follow the lead of other nations and take action. The current trend for excessive legal costs must be stopped and we must ensure genuine claimants, local authorities, businesses and taxpayers get a better deal.