RSA signs third bilateral agreement

RSA has signed its third bilateral agreement with LV= to help speed up motor payments of subrogated motor repair costs and remove unnecessary costs.

RSA had previously signed agreements with Co-operative Insurance in late June and with Groupama earlier this month.

It follows the High Court ruling in favour of RSA this month in a dispute over how the firm used its car repair arrangements to charge add-on costs to other insurers.

The court had ruled in June that RSA’s arrangements were legal, but the verdict was appealed by Allianz and Provident (now Covea Insurance).

After the second High Court ruling the two insurers were given 21 days to appeal the decision at the Court of Appeal.

RSA was initially slated in a damning verdict at Romford County Court in September last year, where a judge said the insurer used its repair arrangements to fabricate add-on charges.

LV= technical claims director Martin Milliner said: “These types of bilateral agreements are a way to ensure that insurers work together as effectively as possible to reduce unnecessary costs within the claims cycle. This is a great step forward to ensure fairness all around.”

RSA claims director for the UK and Western Europe David Pitt said: “We are pleased to have signed a bilateral agreement with LV= and look forward to working with them to help streamline the motor claims process. We remain open to talks with other insurers on the possibility of bilateral agreements to increase efficiency and to avoid any further disputes.”