Compensation culture is a myth, and that's official!

[T.C]

thought you may be interested in a piece that my boss has recently written about the compensation culture in this country and some action that is due to take place in the near future.

"British people are not litigious and there is no compensation crisis, and that is now official. The Cabinet office report published in May 'Better Routes to Redress' from the Better Regulation Task Force debunks the suggestion, beloved by tabloid journalists and others looking for cheap and easy comment, that the country is in the grip of a compensation crisis.

The truth is quite the contrary. Registered accident claims fell by some 60,000 in 2003 - 04 and 55% of all claims issued by the County Courts were for under £3,000. The NHS spends considerably less than 1% of its budget on claims when most professionals (who actually are sued by 'white collar' claimants who appear to attract less criticism) would be delighted to escape with 3%.

The report goes further. It points out that at only 0.6% of GDP, claims costs in the UK are significantly less than the USA (1.9%) and less even than most of our European neighbours - for example Italy at 1.7%, Germany at 1.3% and Belgium at 1.1%. Australia comes in at 1.1%, Japan at 0.8% and conservative Switzerland at 0.9%.

The task force criticises those who seek to stigmatize claimants by suggesting that claiming following an accident is in some way wrong or greedy. They point out that this represents a double standard and that in fact few of us would oppose the principle that if our rights are infringed then we should be able to do something about it - that appropriate action should be available to the injured party to gain compensation from the guilty party.

Headlines bombard us with stories about people trying to claim large sums of money for what are portrayed as dubious or even laughable or absurd reasons. Such cheap copy creates a perception of such a culture that has now actually started to create a defensive attitude in our schools and elsewhere is unhealthy. It might also prevent people from enforcing their rights. This in turn could well turn back safety gains that have resulted from consumer protection legislation achieved over the last 25 years.

The report points out that claiming is not easy and compensation far from automatic. We agree.

The most scathing criticism is aimed at compensation claims companies who have sought to profit from unwelcome and unskilled entry to a complex field which in turn has led to a high profile collapse of well known compensation firms to the general disquiet of all and considerable distress for some.

The report calls for a code of practice to cover claims management companies. If that proves impossible, it calls for the Department of Constitutional Affairs to step in and regulate the sector by December 2005.

The report also recommends extending the Court's small claims track to remove costs rule for smaller cases, to extend the role of the Ombudsman and for mediation and rehabilitation to become the norm. These issues need debate.

There is a price to pay for disinformation. It is now becoming common for potential clients to back away from claiming their rights for fear of contributing to a 'cultural malaise'. This might explain the decline in the number of cases, but, if true also a loss of justice.

Let us hope that journalists, politicians and opinion formers come to their senses over this issue and address it responsibly before the myth of the compensation culture turns into the reality of the wrongdoers charter.

The Government has promised to respond to the report by the end of July"

Adrian Desmond is head of the Personal Injury Group at Boyes Turner and a member of the Richard Grand Society which is made up of the top 25 personal injury lawyers in the UK.

Hope you found it interesting
____________________
It is better to arrive 30 seconds late in this world, than 30 years early in the next

[Major_Grooves]

Interesting. I like most others thought we were turning into a litigious society but that is probably the fault of the media. Does that mean the US (at 1.9% of GDP) is really as litigious as it seems or is it just the way the media portrays them?

Another question then - why is it that insurance premiums for certain things have increased so dramatically recently? Common example is councils who can barely afford the increased insurance costs for fireworks displays. I have also heard the bouncy castle hire firms have trouble with insurance. And at my indoor climbing centre they have lots of information about how spiralling insurance costs are crippling climbing centres.


Also seeing as you'll be reading this T.C. - how much does it cost to go to a) start County Court proceedings against someone, and b) how much are "court costs" if you lose a case? You might remember that you advised me about a neighbour who knocked over my bike and I have on CCTV doing so. I want to make him realise how much easier and cheaper it would be for him to use his insurance company rather than risk court. I have contacted the DVLA to get his details but I would like to avoid court if possible.
____________________
About me|@Major_Grooves|My company|Digg|Flickr

[T.C]

[tgabber]

I just received the renewal for my RAC membership this morning. Included for the first time is an 'Accident Care pack'. After wading through all the marketing guff my strong suspicion is that this is just a 21st century form of ambulance chasing and all they want to be first in the queue to help you sue.

I wonder how long it will be before they start offering cheap funerals as well for 'those slightly more serious accidents'?


____________________
"It's all about dislocating expectation"
Kawasaki KMX125 -> Aprilia RS125 -> Kawasaki ZZR600

[Visitor Q]

[tgabber]

[Danny]

Going off topic again, where were you busted tgabber? I got caught myself a while back, the pics make it all worth while though.

Back on topic, I slipped at work in a staff access corridor that is owned by the shopping centre. My helmet flew about 10 feet down the corridor and needs to be changed ASAP.
I've logged what happened in the accident book and the shopping centre 'customer services manager' said they'll get back to me. I also showed one of the staff the grease that I slipped on.

I've told them that I want a new helmet, but am I legally entitled to one?

[dainesefreak]

Every man is entitled to a working helmet it's only right!

[T.C]

[tgabber]

[Major_Grooves]

[Danny]

Mine was rubbish quality too.

Although it still makes me laugh.