Rehabilitation the key to quelling tide of PI claims.

(From Insurance Day)

Byline: Peta Miller

DELEGATES at the annual general meeting of the Forum of Insurance Lawyers (FOIL) were told by a succession of speakers that more effective rehabilitation is the answer to quell the rising tide of personal injury (PI) claims and increase in premiums.

From both sides of the divide, the lawyers' camp and that of the insurers, came the same message: rehabilitation has to be championed more proactively by as wide a group of stakeholders as possible, and the balance of personal rights versus responsibility has to be re-set.

David Hooker, director of claims and public affairs at the UK insurer, Norwich Union, explained that compensation claims cost the UK GBP10bn ($16.7bn) a year.

He also noted that the National Health Service has put aside GBP4.5bn for future claims and revealed that for every average GBP4,000 claim, almost the same amount is spent on legal expenses.

In this way he demonstrated that monies paid as compensation "eat away at community money" and questioned whether this means "we are out of balance".