EEF responds to changes proposed for injury claims

EEF has lobbied for a number of years calling for radical changes in the way personal injury claims are managed. The current system is grossly inefficient and these costs are passed directly on by insurers to business through premiums.

New proposals provide an alternative voluntary 'fast-track' approach to dealing with personal injury claims between £1k-£25k. This accounts for more than 80% of claims. Whilst the government will not be persuaded to increase the small claims limit, originally set in 1979, from £1k to £5k we believe that there is still significant potential for this initiative to deliver results.

We have argued in our response that to be successful the new scheme needs to cover both accident and disease claims. It is also vital that insurers in particular develop the right back-office systems to support the new arrangements.