Here is an interesting article from IT on the "compo culture".
As personal injury claims add up, insurance costs are putting retailers out of business
www.irishtimes.com
A business person going about his business is landed with a premium hike from €4,000 to €12,000 for, what on the face of it, was a dubious claim.
Here is the bit that stands out for me;
“The insurance company settled it without discussing it with me.”
What is going on here? Insurance companies hiking premiums on the basis of mounting claims (except that facts suggest the opposite) wont even contest the claims?
Ive worked in insurance, for one of the big global companies when I lived in Australia. Specifically, I worked in an area that held files on Australian police officers who were claiming compensation as a result of injuries or trauma suffered in the course of their duties.
The level of detail that these files held on the activities of the police officers was staggering. Photographs, time of leaving home, where they went to, what they did, how they did it. If an officer was claiming injury to their right hand for instance, everything that the officer used their right hand for was monitored - opening car door, holding shopping bags, waving, handshakes, gardening, playing cricket, etc...etc...
All of it was used to challenge the claim of injury, or the extent of that injury. So claims of $5,000 were thrown out, or reduced to maybe $500.
It also had the effect of deterring bogus claims (if any) as the officers knew they would be rigorously monitored.
But here, there is no apparent contest. Just pay out the compensation, and then increase the premium.
Who does this suit?