Airmic calls on government to toughen EL insurance stance

12/07/2010

The Association of Insurance and Risk Managers has urged the government to take a tougher stance on organisations that fail to buy employers’ liability insurance.

The call, which comes in response to the Cabinet Office’s Review of Health and Safety and the compensation culture, also urges more to be done to prevent companies buying les insurance than they are required to.

Airmic technical director Paul Hopkin said: "Apart from the obvious moral and legal imperative to protect staff, it is unfair that our members are placed at a competitive disadvantage because they observe the letter of the law.

“Firms that save money by taking shortcuts on employee safety are getting away with it because of inadequate enforcement.”

Mr Hopkin added: “Recent Government consultations and reviews have failed to improve the situation in relation to case track limits and the claims process for personal injury claims … There is considerable scope for claims to be handled in a much more cost-effective manner and Airmic hopes that the government will take this opportunity to review, simplify and thereby significantly reduce claims handling costs.”

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