The government has affirmed its commitment to work with the insurance industry to stamp out compensation culture in the 2012 Budget.
It said it had agreed with insurers that the industry “commits to challenge vexatious civil claims in order to tackle the compensation culture” and that it was “working with business and the ABI to build confidence in challenging such claims and ensure businesses have access to the right guidance and support”.
The budget also said that insurers are to produce guidance for SMEs about the level of health and safety compliance required to obtain insurance cover.
The measure, as with the drive to tackle compensation culture. is part of the government’s plans to scrap or improve 84% of health and safety regulation.
Insurers agreed to produce the guidance at the prime minister’s insurance summit held at 10 Downing Street in February. The summit was mainly aimed at stamping out compensation culture and, ultimately, lowering insurance premiums.
According to the budget, insurers will set out for SMEs “what is and is not required to demonstrate compliance with health and safety law when obtaining insurance cover”.
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