How long before offer from insurance company?

JPS29

Hi all,

As there seem to be a number of people on here in the insurance industry can anyone tell me whether there are rules determining the time it takes for an insurance company to make their offer of settlement following an RTA/PI claim.

Vehicle costs have already been paid, so only Pi outstanding

This is of course upon the injured party being fully recovered, and them receiving the necessary medical reports.
Also is it just a myth that the first offer should always be rejected as its likely to be low, or will the insurers (Sabre) isue a reasonable offer to limit lenghty solicitor fees continuing.

Thanks in advance

Oscar_The_Grouch

Hi there

The decision on when to provide an offer of settlement depends very much on the nature of the injury.

If you have a minor whiplash claim then what usually happens is that you are sent off for examination by one independent medical expert (usually a GP who does some private work on the side). He sends his report off and that is submitted to the insurers for the responsible party and usually contains a statement such as "the patient would be expected to be fully recovered within x months". Once that report has been reviewed, details of any other costs you want to claim (travel expenses, prescription charges, etc) are sent off and you should receive an offer of settlement shortly thereafter. The whole process should be completed in well under a year (usually 6 months).

If the injury is more serious, then settlement offers will not be put on the table until the full extent of the injury is known and the future prognosis is given. Even then, a solicitor may recommend delaying asking for settlement until recovery is progressing well, to cover the possibility of complications.

The FSA rulebook on claims is called ICOBS 8. It sets out guidelines that pretty much say that settlement "should not be delayed" once the amount has been agreed. Other than that, you are stuck.

There is a deadline of 3 years for issuing legal proceedings from the date of the injury. This does not mean that the claim will then be agreed; merely that the courts will be notified of the case. Liability can be agreed without actually setting a figure on the settlement.

So essentially, I'm saying that they won't make an offer until they can actually put a figure on the "value" of the injury. After that, settlement should be quick if everyone can agree the value.

Moving on to rejecting the first offer, I think that's for your solicitor to advise you.

JPS29

Thank for the reply Oscar. The injuries have now healed. There were 7 physio sessions, the last 3 which included accupuncture. It was general whiplash and muscle spasm inbetween neck and shoulder. Reports have been recieved confirming and are ready to be sent to TP insurer. Just wanted a rough guideline as to time.
Thanks again

rabster74

InTheBrownStuff wrote: »

Hi all,

As there seem to be a number of people on here in the insurance industry can anyone tell me whether there are rules determining the time it takes for an insurance company to make their offer of settlement following an RTA/PI claim.

Vehicle costs have already been paid, so only Pi outstanding

This is of course upon the injured party being fully recovered, and them receiving the necessary medical reports.
Also is it just a myth that the first offer should always be rejected as its likely to be low, or will the insurers (Sabre) isue a reasonable offer to limit lenghty solicitor fees continuing.

Thanks in advance

As someone who is a PI handler for an insurance company I can say that I try to settle the claim in the first offer. I want to close the claim asap after all to reduce my case load. I would look at the offer made and let your solicitors advise you. The first offer is sometimes the best offer!