§ Mr. Jim CunninghamTo ask the President of the Board of Trade what measures he proposes to reduce the time personal injury insurance compensation takes to be processed. [27905]
§ Mr. NelsonThis is a matter primarily for the insurance industry. The Association of British Insurers, the industry's principal trade association, has a code of practice which requires member insurers to settle valid claims without delay.
Not only is it in policyholders' interests for claims to be dealt with swiftly, it is also in the interest of insurers. By settling claims quickly they reduce their administrative costs. Failure to do so will encourage customers to turn to insurers offering a better service.
153WSome claim disputes cannot be resolved other than by a legal action. Lord Woolf has already published an interim report addressing cost, delay and complexity associated with the civil justice system. He is due to publish a final report in July this year.