Plans to introduce reviewable payments in personal injury cases could drive up the cost of employers' liability insurance. That was the stark warning from the ABI yesterday.
The ABI claims that 'The courts bill' would introduce periodical payments - instead of lump sums - for damages in personal injury cases.
However the government claims the law is designed to give claimants appropriate damages for their injuries.
A government statemnet revealed: "(the legislation) will
allow the variation of periodical payments orders where there is a significant medical deterioration or improvement in the claimant's condition which can be foreseen at the time of the original order."
Insurers are opposed to the plans, saying it will force up premiums. The ABI told Insurance Times that reviewable payments could drive premiums up by a further 3 per cent and add to insurers' costs.
The ABI's Malcolm Tarling said: "This will only add to the pressure insurers are already feeling on employers' liability.
"Insurers need to be able to assess their risks as accurately as possible. But it will be difficult to set premiums in reserve with any degree of accuracy without being able to predict their liabilities."
