Insurers new code of practice for third party capture

The Association of British Insurers have drawn up a new voluntary code of practice under which insurers agree not to make unsolicited visits to accidents victims at home or in hospital. However, the code of practice still allows insurers to cold call accident victims to offer them early settlement of their claim.

The issue of what is known as their party capture has been detailed previously on Personal Injury Scotland in articles 'MP's concerned over insurers behaviour' and 'Insurers pressure victims' and the Financial Services Authority have previously considered the matter.

The code of practice does specify that insurers will only be able to contact unrepresented accident victims for the first time by telephone, text, email or letter. At each stage insurers must remind victims of their right to seek independent legal advice. Equally, if the victim fails to respond, then the insurer should not attempt contact again.

Whilst it is to be welcomed that those insurers who sign up to the code will not make unsolicited visits to accident victims, the fact that insurers can still cold-call is of concern. Many accident victims will find it difficult to assess whether the offer of settlement is reasonable, particularly given that the offer is usually made very soon after the accident, at which stage it can be difficult to determine the full extent of their injuries as there will usually be no medical evidence available. Equally, accident victims may not know at that stage how long they are likely to be absent for work and any resultant loss of earnings. As a result, accident victims may well receive less than the claim is worth.

Ultimately, insurers' main duty is to their shareholders not to accident victims.

If you have been involved in an accident that wasn't your fault and have been approached by insurers to settle your claim quickly, then contact our specialist personal injury solicitors to obtain advice either by completing our online form or calling one of our solicitors on 0800 731 8434.

Caroline Kelly
Personal Injury Scotland