The economic climate does have an impact on compensation claims and this area has been covered in the news on many occasions. Some say that work accident compensation claims are becoming more frequent due to the economic climate.
The argument is that, as businesses look for bigger profits, they will often leave their employees with greater exposure to health and safety risks. Another point is that people may be more inclined to bring a claim for compensation if they sustain injury. If the economy was better and people were more content with the money they were earning, it could be said that they would be less likely to bring a compensation claim.
Obviously if you sustain injury at work for example, then it is your right to bring a compensation claim. Whether you exercise the right to claim is entirely a personal choice.
Even though businesses are trying to save money wherever they can, safety should not be compromised whatever the costs. Even when the economy is struggling, there is still a legal requirement to take precautions against employees having accidents in the workplace. Under Health and Safety law your employer has a duty to protect you and your colleagues from injury or harm in the workplace.
Unfortunately, when people are struggling financially, there is likely to be an increase in fraudulent compensation claims. Such claims can include claims made by phantom passengers. A phantom passenger is simply someone who claims to be a passenger in a vehicle when it is involved in an accident, but in truth he or she was not a passenger in the vehicle. So in this scenario it is people bringing a compensation claim who have not been involved in an accident at all. Other fraudulent claims include so called staged accidents whereby the accident is caused or staged on purpose so that people can make a compensation claim against the relevant person (which is ultimately paid for by the insurance company). Obviously such claims have an effect on all of us by increasing insurance premiums for example.
There have been steps recently to reduce the burden of health and safety rules upon employers, especially upon smaller businesses where the risks are deemed to be less. Prime Minister David Cameron was quoted as stating that he would like to “kill off the health and safety culture for good”. However one opinion is that businesses will have less health and safety burdens placed upon them which may not necessarily be a good thing for the safety of employees. David Cameron also commented that employers are held responsible too often even if they have done everything they can to prevent an accident.
The Association of British Insurers (ABI) have said that the legal system encourages people to make exaggerated and fraudulent claims as a result of the “no win no fee” agreements and also in respect of claims management companies which effectively sell people’s details to law firms. The ABI says that businesses are left to pay substantial legal costs which they are ultimately paying for through their employer’s liability and public liability insurance premiums.
The economic climate impacts on most things, including claims for compensation. But on a final note with regards to fraudulent claims, there are systems in place that make them relatively easy to detect; so don’t get any funny ideas!
