The Association of British Insurers (ABI) has called for a change to the way in which employers’ liability and public liability insurance claims are handled.
This request for change has come about as a result of overzealous interpretations of health and safety legislation which has hampered growth of the UK economy and harms small business expansion.
The ABI claims that the current legal system encourages people to make exaggerated and, in some cases, fraudulent claims – which are fuelled by “no-win-no-fee” claims management firms. They believe that this has left UK businesses with high and disproportionate legal costs – which they pay for through their employers’ liability and public liability insurance premiums.
The Director of General Insurance for the ABI, Nick Starling, has stated that insurance companies play a very important role in allowing and encouraging small business to grow without the burden of red tape and other issues.
Mr Starling added that the ABI "has long argued for reforms to make our legal system more efficient, tackle spurious claims and relieve the burden on UK business.”
Following this the Health and Safety Executive (HSE) have stated that a healthy balance between protective regulation for employees and giving firms sufficient leeway to perform their roles well needs to be struck.
Source: http://www.postonline.co.uk/post/news/2159394/abi-calls-reforms-free-businesses-uk-compensation-culture
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