Don't park it: Whiplash reforms and early notification
Aviva has been calling for a more robust system to manage low value, ‘crash for cash’ claims for several years so we were pleased to welcome the new Government Whiplash Reform Programme which came into effect at the end of May.
In figures published recently by Aviva, 60% of the fraudulent claims detected in 2020 were whiplash-related with over 75% committed by third parties and around 15% linked to organised crime.
“For the insurance industry, the new law allows us to focus on those people with genuine injuries and claims to ensure we help them when they need us most. This is a powerful example of the insurance industry working for the benefit of its customers” Dave Lovely, Global & UK Claims Director, General Insurance
First Notification of Loss
We shared a summary of the key changes with you recently; one notable change being the liability decision period. With the window of time to establish liability reduced from 90 to 30 working days, letting us know about an incident early is now as important as ever.
To demonstrate how delayed notification can impact the outcome of a claim, watch our new First Notification of Loss (FNOL) video (also shown below). This has been developed for use with clients so please do pass on and discuss the importance of a streamlined process.
How can you help?
You play a vital role in supporting us and communicating this message to your clients.
Here are some steps you can take to help:
- Encourage your clients to report all motor incidents to us as soon as possible, however minor they may seem
- Allow us to speak with your client's drivers - we know how important your client relationships are, but speaking with the driver directly is vital to understanding exactly what happened and to obtain their statement and signature, which is a requirement of the reforms for liability disputes.
- Stress the importance of taking down the details of the third party – if we can speak with them, we might be able to help them too if your client’s driver is at fault
- Highlight the benefits of full information gathering – any additional material such as photos, CCTV or any witness details could help if a fraudulent claim is made against your client or if a claim is disputed
These actions can help us to manage the cost of the claim and reduce the opportunity for fraud; ultimately working towards a fairer industry - something that we can all be passionate about.
If you would like to discuss this further or find out what more we can do to support you and your clients in this space please contact your Claims Service Manager or Sales Manager.