Campaign calls for an end to compensation culture

A GROUP representing the UK’s insurers attacked the “no win, no fee” compensation culture as it called for an overhaul of the claims system.

The Association of British Insurers (ABI) has joined forces with a number of companies including supermarket Asda, insurer Lloyd’s of London and catalogue chain Argos to form the Consortium for Compensation Reform.

The consortium claims the growth in “spurious and exaggerated” personal injury claims, which grew in number by 72 per cent between 2002 and 2010, has resulted in higher costs for consumers, local authorities and the NHS.

Hide Ad
Hide Ad

The consortium’s calls come nearly three months after the Government pledged to tackle the compensation culture through its Legal Aid Bill, which will be debated by a committee of MPs today.

The move may come as a surprise to some, as insurers themselves have come under fire for selling customers’ details to claims firms in return for high referral fees.