The Central Bank of Ireland (the "Central Bank") examined whether insurance firms were compliant with the claims processing requirements of the Consumer Protection Code ("CPC") (which has now been updated and replaced, see related article here) and whether insurance firms were making an appropriate settlement offer to customers. The inspection examined files from 11 insurance firms and covered a range of personal injuries from less serious soft tissue injuries to injuries which resulted in an individual's quality of life being radically changed.
The findings also revealed that:
- insurance firms are settling claims across the range of amounts outlined in the InjuriesBoard.ie "Book of Quantum";
- potential issues concerning compliance were identified in two insurance firms (the Central Bank are following up with the firms);
- almost four in ten of third party personal injury claims were settled by insurance firms without referral to the Injuries Board;
- claimants who referred their claim to the Injuries Board received a higher settlement offer than the insurer's last recorded offer; and
- where claim assessment awards made by the Injuries Board were rejected either by the insurer or the claimant it was noted that the ultimate claim settlement was higher than the Injuries Board assessment award.
The Central Bank has now published a revised CPC that applies from 1 January 2012 and provides additional protection for consumers by placing greater compliance requirements on firms. Details of the revised CPC are discussed elsewhere in this newsletter - please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.