RSA and Groupama sign deal on motor repair costs

RSA and Groupama have signed an agreement to help speed up the payment of subrogated motor repair costs and remove unnecessary expense from the system.

This deal follows RSA’s High Court victory in June, when rival insurers questioned how the firm used its repair arrangements to charge extra when repairing a not-at-fault customer. After the case, RSA said it wanted to sign bilateral agreements to keep costs down, and signed its first with the Co-operative Insurance in late June.

Groupama claims director Darren Wills said: “This agreement demonstrates what insurers can achieve if they take the time to work together with the particular interests of their customers in mind. Groupama has advocated greater transparency in the market for some time.

“This bilateral agreement achieves just that - it removes frictional costs and most importantly, will not increase the subrogated repair costs of either party.”

RSA claims director, UK and western Europe David Pitt said: ”We’re pleased to have reached agreement with Groupama Insurances, which can only be good for the industry, and we’re currently working on several more agreements.”