Road Ahead Issue19.indd - Motor Insurers

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Issue 19 June 2009

P2 The Children's Trust

P4 Latest News

                           road to
P5 Claims Process Reform

                           The remarkable work of
P6 At The Roadside         The Children’s Trust
CIE Update

P8 'A Day in the Life'
    2      The Road Ahead                  June 2009                                                                                                                                                                                                                3

The Children’s Trust.
Changing lives for 25 years
This year The Children’s Trust has been
established for a quarter of a century.
                                            Alby's story
                                            Alby is currently with the Trust on a       He came to The Children’s Trust in May
The Trust, which raised over £5m in the
                                            residential rehabilitation programme,       2008 for a year of rehabilitation. Since
last financial year, is based in Tadworth
                                            doing really well after he was severely     then he has progressed really well – he’s
Surrey, and is a single site operation
                                            injured in a road accident.                 regaining some of the control of his arms
similar to the Motor Insurers’ Bureau.
                                                                                        so can power himself round in an electric
                                            14 year old Alby was hit by a car in        wheelchair, is learning to walk again
Below are just a few of the services
                                            December 2007 when he was crossing          with the aid of a walking frame and is
The Children’s Trust provides:
                                            the road on his way home from school.       rebuilding his speech.
                                            The accident left him with a severe brain
•   Residential rehabilitation for
                                            injury and multiple fractures. He lost      Before he came to The Children’s Trust
    children with an acquired
                                            his speech as well as his independent       his Mum Lisa was asked what she would
    brain injury
                                            mobility.                                   like Alby to achieve and she said she
•   Special education for children
    with profound and multiple                                                          would love him to walk again. With his
                                            A lover of the cinema, animals, football    determination he may well give his Mum
    learning difficulties
                                            (he’s a West Ham supporter) and playing     the gift she’d really love. Lisa already says    Alfie with British Olympic gymnast Suzanne Dando (who supported Alfie throughout his Marathon challenge)
•   Long-term residential care
                                            computer games, after the accident he       The Children’s Trust has given her son
•   Short breaks, both in the family
                                                                                                                                        Alfie’s story                                     A Partnership
                                            became a changed boy - confined to           back to her.
    home and at the centre itself.
                                            a bed, unable to control his head and
                                            needing two people to support him to sit.
                                                                                                                                        No one sums up The Children's Trust’s             Around a third of the children who
                                                                                                                                        can-do attitude more than Alfie Russell,           receive residential rehabilitation at
                                                                                                                                        one of its greatest success stories.              The Children’s Trust have sustained

About The                                                                                                                               Alfie, now 20 years old, came to the Trust
                                                                                                                                        in 1999 following a devastating road
                                                                                                                                                                                          their brain injury as a result of a
                                                                                                                                                                                          road accident, and the MIB have
Children’s                                                                                                                              accident. He was not expected to walk or          referred cases to the Trust to assist in

                                                                                                                                        talk again, but in 2008 he ran the London         rehabilitation needs. Our plans are to
                                                                                                                                        Marathon, finishing in under four hours.           make this a long-term partnership by
                                                                                                                                        An astounding achievement for anyone,             raising as much money as we can.              If you would like to help
The Children’s Trust is a national                                                                                                      let alone a young man whose life seemed                                                         The Children’s Trust,
charity providing care, education                                                                                                       to have been torn apart forever all those         Ashton West, Chief Executive of the           please call the hotline on
and therapy to children with multiple                                                                                                   years ago.                                        MIB, raised £4,682 for the Trust by           01737 365027,
disabilities and complex health needs,                                                                                                                                                    completing the London Marathon this
and rehabilitation services to children                                                                                                  “The Children's Trust helped me rebuild          year, and the MIB have nominated the
                                                                                                                                                                                                                                        or visit our website at
with acquired brain injury. Its services                                                                                                my life, so I wanted to give something            Trust as one of their chosen charities.
are designed to meet the individual                                                                                                     back and raise money to help other
needs of each child with the aim of                                                                                                     children with brain injuries like mine,”          “Our plans are to make this a                 The Children’s Trust is a
enhancing their quality of life.                                                                                                        says Alfie.                                        long-term partnership.” says Ashton.          supporter of the Every
                                                                                                                                                                                          ”We both have something very                  Disabled Child Matters
The Trust is staffed by teams of                                                                                                        After leaving the Trust, Alfie went back to        important in common – dealing with
dedicated professionals, including                                                                                                      school, worked hard, got a job and now            the problems of children who suffer
experienced nursing and care staff,                                                                                                     gives some of his time to speak about             serious brain injuries as a result of being   and End Child Poverty
doctors, therapists, teachers, social                                                                                                   his incredible journey on behalf of The           injured in an accident with untraced or       (
workers and hospital play specialists.                                                                                                  Children's Trust.                                 uninsured drivers.

It provides care at a 24-acre site in                                                                                                   Not every child with a brain injury can be        We are keen to continue this
Tadworth, Surrey, as well as in the          Alby with one of the Trust's                                                               like Alfie, but he has shown how, given            relationship, and hopefully will see
family home and in the community             physiotherapists, Belinda                                                                  the opportunity, every child can fulfil their      the fruits of any help we can provide
across the UK.                               Thistlethwaite                                                                             potential, whatever that might be.                through our fundraising activities.”
  4      The Road Ahead                    June 2009                                                                                                                                                                                                                       5

Latest News                                                                                                                            Claims Process
                                               Recent national news coverage                                                           Reform will bring
                                                                                                                                       major benefits to all
Head of                                        highlights the growing importance
Risk and
Compliance                                     of the work of the MIB
                                                                                                                                       It was as long ago as spring 2007 that         A three-stage process with some tight         Stage 2
Kaushik Patel joins the Executive                                                                                                      the Ministry of Justice (MoJ) issued a         timescales will operate to see that cases
Management Team on 1 July as part                                                                                                      consultation paper outlining, amongst          are progressed quickly and efficiently.        The Settlement Pack
of his promotion to the position of                                                                                                    other matters, a vision for a quicker low      Solicitors’ costs will be fixed for each       Having received the admission of liability
Head of Risk and Compliance.                                                                                                           cost system of dealing with claims.            stage and paid in stages as a claim moves     the claimant solicitor will obtain a medical
                                                     BRITAIN’S motorists could each                                                                                                   through the process.                          report and prepare a ‘settlement pack’
Kaushik joined the Bureau as                         save £30 a year on their insurance                                                The Government’s response to the                                                             which will set out details of all elements
Compliance Officer in 2004 and was                    if every illegal driver was forced
                                                                                                   If you are stupid enough to drive   consultation was a long time coming,           Stage 1                                       of the claim. The settlement pack is then
subsequently promoted to the Audit                   from the road.
                                                                                                   without insurance you now run the   being released in July 2008. In a recent                                                     also sent electronically to the insurer
and Compliance Manager role in 2006.                                                                                                                                                  The Claim Notification Form
                                                                                                   risk of having your car crushed.    communication to stakeholders, the MoJ                                                       within 15 days of checking the contents
Kaushik has over 15 years experience                 Nearly TWO MILLION uninsured                                                      reported that the reforms would not be         This involves claims being notified to         of the medical report. As part of sending
in risk and compliance management,                   drivers break the law and end up
                                                                                                   Police have revealed they are       in place by the promised October 2009          insurers using a set Claim Notification        the information to the insurer, the solicitor
including six years working in the                   killing 160 people and injuring
                                                                                                   currently seizing as many as 460    deadline, instead being delayed until April    Form (CNF). This will be sent                 provides a valuation as an offer to settle
Information Risk Management                          23,000 people every year.
                                                                                                   uninsured vehicles every day and    2010.                                          electronically to a defendant’s insurer       the case.
department at KPMG. Kaushik holds
                                                                                                   the figure is growing.                                                              (or the MIB). It will be seen from what is
a Law degree and completed his                                                                                                         Work continues however to try and agree        said below that this process is all about     A further 15 days is then allowed for
Law Society Finals before starting his                                                                                                 the fine detail of the new process and          speeding up what will be a large number       the insurer to respond to the claimant’s
professional career in compliance.                                                                                                     appropriate levels of costs. Insurers, MIB,    of RTA claims and the use of electronic       offer. The insurer can either accept
                                                                                                                                       the Forum of Insurance Lawyers (FOIL)          communication is an integral part of that     the offer made and settle the claim, or
                                                                                                                                       the Law Society, the Motor Accident            streamlining.                                 make a counter offer. Once again, the
                                                     The cost of accidents and damage caused by motorists with no insurance            Solicitors Society (MASS), the Association                                                   communication will be electronic to keep
                                                     has fallen this year, reflecting a breakthrough in the fight against uninsured      of Personal Injury Lawyers (APIL) and          On receipt of a CNF, an insurer will have     the process fast and efficient.
                                                     driving.                                                                          the Trade Unions have all been heavily         15 days to respond saying whether liability
                                                                                                                                       involved in negotiations overseen by the       is admitted or not. If liability is denied,   Just 20 more days are allowed for the
                                                                                                                                       MoJ and mediated by the Civil Justice          then the case falls out of the new process    settlement amount to be negotiated and
                                                                                                                                       Council.                                       and will proceed under current rules.         agreed. If that does not happen, the case
                                                 Our Easter Driving Campaign reached over                                                                                             If liability is admitted the case will move   moves to stage 3.
                                                                                                                                       So what is in the detail of the new process    to stage 2.
                                                 2m local radio listeners                                                              and how is it going to change the current
                                                                                                                                       system of dealing with claims?
                                                                                                                                                                                                                                    Stage 3
                                                                                                                                                                                      MIB will have a slightly longer period to
                                                                                                                                                                                      provide a response than the 15 days an        A Court Decision
                                                                                                                                       As mentioned above, the final details           insurer has. MIB is in a different position   This entails asking the court to adjudicate
                                                                                                                                       are not yet agreed and written, however        to an insurer in that it will not have the    the dispute. A judge will decide the level
                                                                                                                                       what follows is an outline of the likely key   luxury of a report of the accident from       of compensation and this can be done as
                                                                                                                                       features.                                      a policyholder and will have to try and       a paper exercise or by an oral hearing.
                                                                                                                                                                                      make contact with the uninsured motorist

  Coming up over the
                                                                                                                                       The new process will be for RTA claims         and any witnesses in order to investigate     The finalising of the detail and
                                                                                                                                       with a value between £1,000 and £10,000.       liability.                                    implementation of this may still be some
  next few months…
                                                                                                                                       Claims below this value band will continue
                                                                                                                                                                                                                                    time away; however the changes are
                                                                                                                                       to be dealt with within the 'small claims      Comparing the timescales mentioned            significant and will require considerable
                                                                                                                                       track' and those above the limit will be       above to a current system which gives an
   • New Data Protection Directive                                                                                                                                                                                                  process changes within both insurers and
                                                                              ers’ Agreements for                                      subject to the current rules set out in the
                                       to the Uninsured and Untraced Driv                                                                                                             insurer 3 months to respond to a letter of
   • New supplementary agreements                                                                                                      pre-action protocol. Claims to MIB under
                                                                                                                                                                                                                                    solicitors. The outcome for victims will
                                         Northern Ireland                                                                                                                             claim reveals just how much change is
     jurisdictions such as Gibraltar and                                    a draft of a whole                                         the Uninsured Drivers’ Agreement will be
                                                                                                                                                                                                                                    undoubtedly be a much improved system
                                        nt – MIB is continuing to work on                                                                                                             taking place here.
   • New Uninsured Drivers’ Agreeme                                        ieties of England                                           included in the new process.
                                                                                                                                                                                                                                    of providing compensation fairly and
                                        nt. MASS, APIL and the Law Soc
     new Uninsured Drivers’ Agreeme                                              the draft to be
                                            in the project. The next step is for
      and Scotland have all been involved                                     r public consultation.
                                        ernment will then undertake a wide
      submitted to the DfT and the Gov
    6      The Road Ahead                  June 2009                                                                                                                                                                                                                                            7

                                                                                                                                          CIE – the story so far
                                                                                                                                                                                                  Working collaboratively MIB and DVLA have         mistyped VRMs, along with duplicated MID
                                                                                                                                                                                                  committed to carry this project through to        records and a market-wide look at VRM
                                                                                                                                                                                                  delivery by 2011. The consultation paper          pre-validation at the point of sale. At present
                                                                                                                                                                                                  outlined a skeletal process for CIE and           the volume of mistyped VRMs creating both
                                                                                                                                                                                                  together the two project teams have now           duplicates and missing data on the MID is
                                                                                                                                                                                                  jointly created a robust, detailed end-to-end     a source of concern. If the CIE processes
May was a busy month for Roads                                                                                                                                                                    compliance and enforcement process to             were to be implemented today, thousands
Policing Officers from Wiltshire.                                                                                                                                                                  provide the essential backbone of support to      of policyholders, across all members,
                                                                                                                                                                                                  this piece of legislation.                        would receive warning letters alleging they
In a countywide series of Roadshows, the                                                                                                                                                                                                            are not insured and reminding them of the
police were able to show the public both                                                                                                                                                          Whilst the full business case will not            consequences. The truth however is they are
the human and financial costs of driving                                                                                                                                                           be considered by the Government until             insured but their VRM is not correct on MID.
without insurance.                                                                                                                                                                                October 2009, giving the all-important            Tackling this now in the 18-month run up to
                                                                                                                                                                                                  'financial' green light to the project, there      the implementation of the regulations is vital.
A crushed vehicle was on display at                                                                                                                                                               are important streams of work we all need
                                                                                                                                          Following approval by the DfT’s Investment              to be considering in the meantime. This is to     In the coming months MIB’s CIE team will be
each of the Roadshows to remind people
                                                                                                                                          Approval Board of the outline business                  be done with a confidence that Government          focussing on preparing the groundwork for
of just one consequence of uninsured
                                                                                                                                          case and impact assessment, the                         (including other leading parties) is committed    the compliance phase of the process, which,
                                                                                                                                          consultation period for Continuous Insurance            to this legislation and the proposed solution     as outlined in the consultation paper, will be
                                                                                                                                          Enforcement (CIE) concluded in April 2009.              to tackle non-compliance.                         managed by MIB and requires significant
 Wiltshire police officers have                                                                                                            MIB and DVLA have gathered our respective                                                                 planning ahead of the October deadline.
 now seized well over 5,000                                                                                                               forces together and embarked upon the                   Such areas to consider over coming                More detailed information will follow.
 vehicles since 2005, when                                                                                                                preliminary stages of the CIE project over              months will be an increased focus on MID
                                                                                                                                          recent months.                                          data quality, tackling common errors and
 they received new powers
 under the Road Traffic Act.

 2005 – 114
 2006 – 1,439                                Sgt Barrie Card with a crushed uninsured car           Image courtesy of Salisbury Journal
                                                                                                                                          Accidents in the UK involving Foreign Vehicles
 2007 – 1,943
                                                                                                                                            In 2008, just over 18,000 foreign vehicles              a steady decrease in claims from the 2004
 2008 – 1,636                               The Roads Policing Roadshow visited Amesbury, Chippenham, Devizes, Melksham,                    were involved in accidents in the UK, which             Accession Countries towards the end of 2008
                                                                                                                                                                                                                                                      Anyone involved in an accident with a
 2009 – 490 (up to 1 June)                  Salisbury, Swindon, Trowbridge, and Wootton Bassett.                                            is 2,000 less than the previous year. This is           compared to the beginning of that year. The
                                                                                                                                                                                                                                                      foreign vehicle should make a note of the
                                                                                                                                                                                                                                                      registration number of the front cab, as this
                                                                                                                                            the first reduction in overall volumes since             2007 Accession Countries are the only group
                                                                                                                                                                                                                                                      is the only one that is valid to make a claim
                                                                                                                                            tracking started in 2001 (13,321) and is also           to have seen an increase in the number of
                                                                                                                                                                                                                                                      against the foreign insurer.
                                                                                                                                            the lowest volume of claims since                       claims during the course of 2008, from 181 to
 Inspector Nick Elton, Operations                                                                                                           2004 (18,552 in 2005).                                  229 claims.
                                             It’s not just old bangers that are                                                                                                                                                                       The enforcement authorities have also
 Manager for the Wiltshire Roads
                                             driven without insurance in Wiltshire.                                                                                                                                                                   issued foreign lorry drivers with special
 Policing Unit says,                                                                                                                        The top 10 countries make up over 78% of                The overall decrease could be due to a
                                             ANPR cameras (Automatic Number                                                                 all claims with Poland claiming the top spot            number of things, such as fewer foreign
                                                                                                                                                                                                                                                      mirrors to help their rear view, but there is
                                             Plate Technology) have helped in                                                                                                                                                                         no way of monitoring usage.
 “These figures clearly show                                                                                                                 for the last three years. While the number              vehicles on UK roads. The recession has
 the extent of the number of                 the seizure of a Bentley, a Porsche,                                                           of claims from Poland reported to MIB has               clearly had an impact in this context.
                                             10 Lexus, 77 Mercedes, and 226                                                                 increased overall since 2001, we have seen
 uninsured vehicles using the
 roads. Officers will continue                                                                                                             Country              2001        2002        2003            2004       2005        2006        2007       2008         Rank        Change 2001 to 2008
 to make best use of modern                                                                                                               Poland                361         540             592         938       1,907      3,132       3,893       3,436           1             - 3,075
 technological advances to                   Wiltshire’s Roads Policing Unit                                                              Germany             2,019        2,481       2,429          2,731       2,704      2,555       2,723       2,286           2               - 267
 identify and prosecute those                consists of 68 Constables,                                                                   Netherlands         1,625        2,004       2,021          2,340       2,542      2,458       2,170       1,731           3               - 106
 drivers who have no regard                  9 Sergeants, 2 Inspectors,                                                                   France              2,247        2,428       2,317          2,263       2,100      2,026       1,913       1,687           4               - 560
 for the safety of others by                 and 1 Chief Inspector.                                                                       Spain               1,337        1,592       1,553          1,495       1,567      1,495       1,341       1,212           5               - 125
 driving whilst uninsured,                                                                                                                Czech Republic        250         375             409         538        749         870         913        859            6               - 609
 and by taking this positive                                                                                                              Hungary               192         184             204         347        569         655         785        840            7               - 648
 action, we will make this                   In the past 12 months, almost 40%                                                            Italy               1,159        1,376       1,359          1,299       1,253      1,198       1,104        812            8               - 347
 county a much safer place                   of the vehicles seized have been                                                             Belgium               909        1,010       1,022          1,062       1,046        928         829        747            9               - 162
 for everyone.”                              crushed.                                                                                     Lithuania                -           1            11          232        518         745         798        716          10                - 716
                                                                                                                                          Grand Total        13,321      15,740       16,416         17,032      18,552     19,621      20,102      18,159                           4,838
    8        The Road Ahead                           June 2009                                                         Naomi Grant

"My day typically starts with a                       pursuant to Article 75 of the Memorandum of            Each day is
                                                      Association of the MIB. This highlights the fact       different and
 four mile run at 6:15. Beyond                        that we have to advise many insurer clients of         varied although
                                                      the technical issues surrounding the Uninsured         given my
 that all similarity ends – as                        Drivers Agreement and how they may apply it            organised
 a solicitor, and team leader                         on behalf of the MIB.                                  approach to
                                                                                                             work, whilst
 within our specialist claims                         When you consider the fact that approximately          the job may occasionally demand for
 validation team in BLM                               10% of motorists have been involved in an              me to work longer hours, it is rare for me to take
                                                      accident with an uninsured driver, it follows that     work home because a good work/life balance is
 Manchester, there is no real                         a percentage of the claims submitted to the MIB        encouraged so there is plenty of time for me to
 ‘typical’ day."                                      will require closer scrutiny. With this in mind,       pursue my out of work hobbies of running and
                                                      BLM’s claims validation teams work closely with        scuba-diving."
"Berrymans Lace Mawer works with the MIB,             the MIB’s own specialist claims unit to defeat
and many major insurers, in the investigation         these fraudulent claims.
of fraudulent insurance claims. This is an ever
growing area, in a testing economic climate, and      Our work means that I work closely with the             Naomi's stats
is throwing up many challenges to the judiciary       IFB, police, counsel, investigators and other
and the industry as a whole.                          solicitors. I am currently leading investigations        School
                                                      of three major fraud ring operations as well as          The John Henry Newman School,
As a team leader, I am responsible for the direct     having a mix of general motor fraud claims for           Stevenage, Herts
supervision of five lawyers in an expanding team       other insurers. I would regard this job as being
                                                                                                               First job
that now comprises 28 people.                         a cross between a lawyer and police officer.
                                                                                                               I worked in a warehouse packing
Our work is diverse and ranges from individual        Working with the police is very different to
                                                                                                               Reader’s Digest magazines and sorting
fraudulent claims, such as low velocity impacts       working with an insurer client but we have good
                                                                                                               them into postcode areas
and bogus passenger claims, to complex                working relationships with a great many police
£multi-million organised crime/fraud rings.           forces and this is something that we continue to         Car
                                                      develop.                                                 VW Bora
Dealing with potential fraudulent claims requires                                                              Music
a keen eye to detail and a very organised             I try to do as many of my own hearings as
                                                                                                               An eclectic mix if you look at my iPod!
approach to work – it sounds clichéd, but you         possible as I believe that it assists you to better
                                                                                                               Coldplay, Bon Jovi, Bryan Adams, Kings
really don’t know what might land on your desk        understand the approach that the judiciary take
                                                                                                               of Leon (plus a pretty random choice of
from one day to the next, but that’s what makes       to these claims – especially as judicial attitude is
                                                                                                               80s music!)
it exciting and challenging! One day I might be       ever-changing and can vary from court to court
                                                      and circuit to circuit.                                  Favourite TV lawyer
dealing with a straightforward opportunistic
                                                                                                               Judge John Deed
fraudulent claim, then next I might be co-
ordinating a major investigation. It is not unusual   As well as progressing my own cases, each                Device
for me to organise meetings in London with            day involves an element of supervision and               GHDs – meant for every bad hair day
both the client, the Insurance Fraud Bureau, the      mentoring of junior staff members. So much
                                                      of our success depends on having a good                  And if Naomi hadn’t become
police and other insurers so my organisational
                                                      technical ability and it is part of my role to           a solicitor
skills are tested to the limit. The job is also
                                                      bring on other team members to teach them                There was a brief week when I
technically demanding. Dealing with fraudulent
                                                      the strategy to investigate and progress                 contemplated being a politician instead
claims involves detailed analysis of indemnity
                                                      these claims and the technical know how to               but surprisingly this is the only job I’ve
issues and demands a thorough understanding
                                                      defeat them. This is challenging but also very           wanted to do since the age of 11 (now
of the status of insurers when their policyholders
                                                      rewarding, watching a person progress, and               how’s that for making an early career
are complicit in dishonest activity. The team
                                                      satisfying knowing that you are maintaining              choice!)
has to regularly advise clients on whether their
liability is contractual, statutory (under the        good standards for the firm and for the clients
Road Traffic Act 1988) or as Article 75 insurer        for whom we work.

 If you would like to reproduce all or part of the contents of this publication, are interested in interviewing any of the contributors, or submitting an
 article yourself, please contact Lorraine Preston on 01908 422455 or by email at

  For further information, please contact -
  Motor Insurers’ Bureau, Linford Wood House,
  6-12 Capital Drive, Milton Keynes MK14 6XT. Tel: 01908 830001


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