LEIG future
The Legal Expenses Insurance Group (LEIG) has recently expanded with the addition of three new members:
Box Legal Ltd
Temple Legal Protection
Elite Insurance Company
The Legal Expenses Insurance Group (LEIG) was formed in April 2006 by a number of leading legal expenses insurers and intermediaries. Currently there are nine members of the Group and they represent in excess of eight million motor legal expense policyholders and over 16 million policyholders in general. It is estimated that members account for over half of the before the event (BTE) and after the event (ATE) legal expenses insurance market.
The aim of the Group is to work together to protect and advance the rights of claimants to justice and fair levels of compensation.
A number of legislative, trade body and regulatory proposals are currently in discussion. While some proposals can be commended, several have the potential to impact adversely on the ability for individuals to be compensated fairly for personal injuries or where they have lost out from someone else’s actions or negligence.
A current key topic of interest are the proposed changes to RTA personal injury claims under £10,000.The Group submitted detailed comments on the MoJ consultation paper “Case track limits and the claims process for personal injury claims”. We were pleased with the outcome which rejected the proposition that after the event (ATE) insurance premiums taken out at the beginning of the claim should not be recoverable but instead the premium should only be recoverable on ATE insurance taken out where liability was denied or where no admission was made within the relevant time period.
The Government response to the consultation announced changes to the RTA personal injury claim arrangements for claims under £10,000 but stated that the ATE changes would not be taken forward so premiums would continue to be recovered in all instances.
It was stated that this was to “ensure that the introduction of the new claims process will not damage the ATE market, but will allow it to adapt to the new process.”
Based on these assurances, the LEIG was content that there was no need for involvement by ATE insurers in the details of the RTA changes and in the various workshops aimed at sorting out detailed arrangements for RTA personal injury claims under £10,000.
However, there are now market rumours suggesting that in the ongoing discussions there should be no recovery of ATE premiums and no policies should be taken out until after insurers have pronounced on liability.
The LEIG has been seeking confirmation that no changes which will impact on the legal expense insurance model will be made without the involvement of legal expense insurers. This includes any discussions on the possible introduction of a fixed premium or a reduced premium based on a reduced risk.
The Group welcomes new members from companies with a similar focus and commonality of purpose. It also welcomes contact from organisations with similar objectives.
Further information
Tony Baker
Director, LEIG
Hampden House
1 Hampden Hill
Ware, Herts SG12 7JT
Email: thetonybaker@gmail.com
