1. Welcome from DAC Beachcroft h Gibraltar Insurance Institute Seminar
Craig Godding - Head of Motor
Emma Fuller - Head of Credit Hire

2. Agenda h Personal injury ongoing reforms The Briggs review
Credit hire and the unintended consequences of reform
Credit repair and credit hire fraud
Motor case law update

3. Personal Injury ongoing reforms

4. The Autumn Statement
Proposed removal of the right to General Damages for “minor whiplash” injuries
Suggested raising of the Small Claims limit for injury claims to £5000

5. Removal of right to GDs What is a “minor” whiplash injury?
Med Co definition – not tested
Wide enough to fulfil Government’s objectives?
Linked to symptoms? Tariff?
Legislation required
Timetable / EU referendum
Impact on claims inflation / classification

6. Increase in Small Claims limit
Small Claims limit reviewed in 2013 (Transport select committee) and no uplift proposed
Goes beyond index linked increase (circa £2,000)
Rise of litigants in person
Entry into market of unregulated entities / CMC’s?

7. Extension of fixed costs
Rupert Jackson report 28 Jan 2016
Limited to cases up to £250,000?
Clinical negligence to lead the way? “Balkanisation”?
No requirement for legislation
Next steps

8. Med Co
MoJ objective - an “improved, robust system for medial evidence which will deter unnecessary or speculative claims”
Tranche 1- Oct 2014, Tranche 2 – April 2015
Problems with Tranche 2 – allocation and accreditation
MoJ response to call for evidence - 24 March 2016

9. The Briggs Review

10. The Briggs Review More than £700m set aside
4 year implementation (IT successes?)
Full electronic court with online submissions and adjudication
Increased use of Case Officers
Rationalisation of the court structure

11. Implementation to early 2018 End of Parliamentary session
Reform Implementation timeline
2016
2017
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
PI Damages and
Small Claims
Track limit
Consultation
Legislation
Implementation
Credit Hire
Consultation
Implementation to early 2018
Briggs Review
Consultation
Final Report
Implementation to 2020
Multi Track
Fixed Costs
CJC Activity
MOJ Consultation
Implementation to Oct 2017
EU Referendum
End of Parliamentary session

12. Credit hire and the unintended consequences of reform
- a brief history
- GTA/ rate review
- proposed reform and impact
‘Squeezed balloon’
- credit repair
- credit hire fraud
- where else………
                                      

13. Credit hire

14. Key Activity Figures 26 Number of insurers subscribing to the ABI GTA54
Number of CHOs subscribing to the ABI GTA
120
Number of trading CHOs according to CHO website
1,000 +
Number of trading CHOs according to DAC B
167,000,000
The cost of Credit Hire in the UK in £s in 2014
75,000,000
The cost of Credit Hire Fraud in the UK in £s in 2014
Suggested remedies for controlling cost by the CMA

15. Credit Hire Progress Report
February 2014
£30m cut from CC estimate ?
Insurance fraud taskforce output
October 2012
Referral to CC
April – July 2013
Extension of RTA portal; reduction in fixed costs; FRCs in FT litigation
May- June 2015
GTA rate review
December 2012
Singh v Yaqubi ?
Future of GTA
November 2013
Salat v Barutis
September 2014
CMA final report released ?
Rates investigation
2013
2014
2015
December 2012
Drive Assist go into administration
December 2013
CC Recommendations released
February 2015
Stevens v Equity ?
Government reform
February 2013
Auto Focus Appeals commence Dickinson v Tesco
April 2014
CC becomes CMA ?
Ongoing appeals
November 2012
Plans for GTA Portal announced at CHO AGM
July 2013
Opoku v Tintas
March 2014
Zurich v Umerji ?
Portal

16. Attempts to change the environment……

17. Collaborative approach….

18. Proposed reform and impact

19. ‘Squeezed Balloon’

20. What can change post reform???

21. Credit repair- the figures5
Number of days credit repair periods have increased by 13
Average credit hire period 16
Average credit hire period where credit repair features
20%
Rise on credit repair rates, parts and total credit repair claim costs.
23%
Increase in Helphire credit repair costs
28%
More claims where roadworthy vehicles have been stripped of parts at the outset of the period
£300
Helphire higher than other CHO for same type of vehicle

22. Credit repair- what we see

23. Credit repair- Solutions
Capture
Partial admissions
Rates – Direct evidence
Add on challenges
Engineers

24. Credit hire fraud

25. What is Credit Hire Fraud
Phantom Hire
Phantom Hirer
Phantom Hire Vehicle
Phantom Hire Organisation
Simultaneous Hire
Artificial Exaggeration
Staged/Contrived accidents *
Induced Accidents *
Credit Hire Fraud rings
Can be CHO or Claimant driven activity
* excludes claims for personal injury

26. Credit hire fraud- post reform……

27. Credit hire fraud- solutions
Pick the right battles..
Be intelligence led…
Prepare evidence not suspicion…
It may not be fraud…
Build in fixed and ad hoc reviews of strategy and process…

28. Clear skies ahead?? What else to expect……

29. Motor Case Law Update

30. Vnuk v Zavarovalnica Trigalev [2014]

31. (Martin) Lewis v Ward Hadaway [2016]
Claimants issued a number of claims just before the expiry of limitation
Values on Claim Forms understated to allow lower Court fees e.g. damages limited to £15,000, but actual value in excess of £300,000.
Claim Forms amended prior to service of proceedings to reflect the valuation - balance of correct fee paid
Application to strike out as abuse
Court agreed an abuse, but disproportionate to strike out
However – summary judgment on limitation on some – Date a claim is brought is date correct Court fee paid
Moneysavingexpert?

32. Sabir v Osei-Kwabena [CoA 2015]
Summers v Bundy [CoA 2016]
Clarifying effect of Simmons v Castle
Application of 10% uplift on general damages
Sabir v Osei-Kwabena [CoA 2015]
Contributory negligence in pedestrian case
Causative potency and blameworthiness
Pearson v Anwar [2014]
Failure to wear a seatbelt
25% finding of contrib even where some injury would have occurred in any event

33. Broadhurst & Anor v Tan & Anor [2016]
Knauer -v- Ministry [2016]
Multiplier in fatal – starts date of trial not date of death and as a result awards will be higher
Broadhurst & Anor v Tan & Anor [2016]
Claimant beating their own Part 36 obtains indemnity costs from the last date for acceptance, not fixed costs
Thevarajah v Riordan [2015]
Relief from sanctions
Strict application of Mitchell