Insurers disappointed by union 'pull out'

The Association of British Insurers (ABI) today urged the TUC not to "sit on the sidelines" in the reform of workplace compensation. The organisation also expressed "disappointment" at the TUC's recent decision to "pull out" of the Government's employers' liability pilot scheme.

The scheme, proposed to be piloted by the Department for Work and Pensions and major insurers during the first half of this year, aims to streamline the payment of personal injury claims below £10,000 without litigation.

Legal costs make up to 40% of the cost of employers’ liability claims and the ABI wants this figure to be reduced so that more compensation is paid to claimants.

Speaking today at a conference hosted by the Association of Personal Injury Lawyers, Nick Starling, the ABI's director of general insurance, said: "The pilots are a genuine attempt to improve the current system which is dogged by high costs and unnecessary legal wrangling.

"It is disappointing that the TUC pulled out without giving the pilots a chance. We would still like to see the pilots go ahead where they can.

"The TUC must not sit on the sidelines, but needs to be fully engaged in this important debate. We are keen to discuss with the TUC how they can become fully involved in developing a workplace compensation system that is fit for the 21st century."