The Great 'How do insurers decide whether to pay out?' Hunt

djez wrote: »

A similar thing happened to me at a junction, and even though the other driver admitted liability and his insurer paid my claim, Admiral loaded my policy at renewal. They also loaded my wife's policy as i was a named driver. The reason given to me was that a no fault claimant becomes a higher risk because they are likely to have an accident within 12 months that is their fault.

I often used to wonder about this.
I work in the industry but on the claims side, not the pricing / underwriting side. Also, having been rear ended 4 times over the last 15 years (high mileage driver) I know it would affect me if I ever moved away from a company car.

Anyhow, the other day I picked up a copy of Roadcraft - The Police Drivers Handbook (HMSO 1994). On page 2 it states :-

"If you have had an accident in one three year period you are twice as likely to have another accident in the next 3 years"

and

"If you have had an accident for which you could be held at least partly responsible, you are 4 times more likely to have a similar accident in the next year."

Unfortunately the book does not quote the source for these figures but it does give an indication why insurers load premium. Insurers stats will in theory be better than the police etc because they have the records available. The police do not ask you about your accident history afaik when attending accident scenes.

I'd like to give praise where praise is due. I have an investment policy with Legal and General to cover my mortgage which also has critical illness cover.
On the 8th May I was diagnosed with aggressive breast cancer. The following day I called L&G who were very sympathetic. I got the claim form the following day. I was advised it could take up to 12 weeks to process - 6-8 weeks to get medical reports and 3-4 weeks to finalise claim.
Today I received confirmation that they are paying the claim. 5 weeks, no quibble,no hassle.

Well done L&G

day1 wrote: »

. finally as a final attempt we contacted the ombeddsman who underwrites all insurance companies, we sent through our whole claim, every peice of letter and paperwork we had.

The ombusdmen do not underwrite anything

lakes-claire wrote: »

I am in the process of trying to claim with Liverpool Victoria for both Building and Contents Insurance. My house has been severely flooded by the negligence of Laing O'Rourke building the A590 bypass.
Top advice - DON'T USE LIVERPOOL VICTORIA. Also - Check exclusions for Legal Expenses
This claim is nothing to do with storm damage, but negligent constructors who have severely damaged my home and property.
And just in case you're wondering, Laing O'Rourke have limited their liability to "minor internal damage". They certainly don't think any distress has been caused over the last 9 months! Who are they kidding?

Hi Claire,

For what it is worth, you have done quite well to get this far. Unfortunately your insurer stands behind you not in front. L&V obviously think that L O'R should get their finger out and compensate you. In the mean time it is your job to mitigate the damage, ie stop it getting worse, by paying out of your pocket and then try to claim off L O'R, and only if you get nowhere with them come to L&V.

I had a similar road built past my place about a dozen years ago, and I can still make myself annoyed if I think back to the way the contractors bashed ahead, with complete disregard for us local people. But hell you have got to move on with your life.
We had formed a local group and got a specialist surveyor briefed before the first sod was turned. Properties at risk were surveyed in advance and progressively for subsidence. Fortunately the road builders in the event worked through the driest summer on record. Even now my advice would be "If you get wind of a development like this, move while you still can".

Usually the authority tries to hide behind the skirts of the contractor, who then takes the "see you in court in 2 years time when it is all over, and we will see if you can prove Negligence rather than Act of God" approach. (BTW have you the odd 100K to put up as a bond for the lawyers to salivate over?).

We had flooding (of farm land) after the event, because some of the drainage was built incorrectly (you could see it was wrong with the naked eye) and a whole field had to be "landscaped" and re-seeded.
HOWEVER if you work with them, being tough but not right over the top, you might get a better result. THERE ARE NO PROBLEMS ONLY OPPORTUNITIES. Presumably you have a surveyor working on your deleterious affectation claim, or CPO claim if you have lost land to the road? Now what else do you need doing in place of financial compensation, cos that is not in their budget: Ditches dug out? Scrub cleared? Swimming pool? Perhaps they need to rent somewhere to store the machinery?
Pity you don't have some gravel you could sell them.

That said, when it is all over, watching the traffic will be quite fun BUT the noise will spoil your garden "Come over for a BBQ and we can all shout at each other" just like in a disco. Don't suppose you asked for, or qualify for, a low noise surface? (At 60 MPH half the noise is made by the tyres and a big chunk of the rest is the engine echo off the road because the Government won't force the vehicle manufacturers to box in the rear wheels and fit a cover for the sump area ie "let the polluter pay and endure their own noise inside their own vehicle".)

Let us know the eventual outcome.

Harry.