DWP details pilot scheme to fast-track EL

15/12/2004

The Department for Work and Pensions has set out details of the long-awaited pilot it will start early next year to streamline employers’ liability claims. With fast-tracking being a subject on which consensus may be possible between claimant and insurance lawyers, the DWP is hoping to develop a more cost-effective, efficient and transparent claims system.

The scheme will target unnecessary costs at the start of the claims process, including notification and investigation, and will explore how negotiation and settlement can be better handled. “The proposition is (intended) to ensure work undertaken remains proportionate to the complexity and value of the claim,” said a DWP spokeswoman.

The pilot will assess 1000 claims of up to £10,000 in 12 regions. It has been devised with the support of the Association of British Insurers, Department for Constitutional Affairs, Association of Personal Injury Lawyers, Confederation of British Industry and Trades Union Congress.

“The plan is to develop a system where there is legal involvement only when necessary. It also includes earlier notification of insurers and greater use of rehabilitation,” said David Williams, claims director at Axa, which has been involved in the pilot. Mr Williams added: “We want to make sure insureds are happy. One of the main concerns for employers is that speedier claims handling could encourage additional claims, and that insurers will not resist fraudulent claims, which is not the case.”

Stakeholders are working towards a pilot specification, which the DWP is expecting to have agreed by early next year.

Post