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Articles for November 2003
Letters to the editor
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01 November 2003
Dear Sir,
I read Richard Bulmer’s article on the “Liability Crisis” (October issue) with interest. I take issue with several of his points:
He suggests that UK commercial policyholders have experienced a “reduction in the amount..
Markel launches employment practices products
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01 November 2003
A range of integrated products providing insurance protection for the employment practices exposure of small and medium-sized employers has been launched by Markel (UK), a subsidiary of Markel International.
The range of products is aimed at..
Lloyd’s chairman criticises US tort system
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01 November 2003
Lord Levene, the chairman of Lloyd’s, has called the US tort system, part of the “pernicious, cancerous and ruinous” compensation culture in the US. He added “The fear of being sued is making everyone more..
Book published – “Asbestos: The Relentless Peril”
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01 November 2003
Published at the end of September 2003, “Asbestos: The Relentless Peril”
, by Adrian Leonard, explores the rising cost of asbestos claims around the world, and looks into future trends in the US, UK and Europe...
A Response
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01 November 2003
Dear Sir
I welcome Nick Goulder’s contribution to the debate about the Liability Crisis, and would respond to the specific points in his letter as follows:
I would suggest that the dividing line between insurance cover..
Asbestos angst across the ocean
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01 November 2003
By John Crowell, XL Reinsurance America
Our July 2002 Liability Bulletin
contained an article entitled “Asbestos Claims – Will They Ever End?”
That certainly was a rhetorical question. By now it seems clear that asbestos will..
Pre-action protocol for disease and illness claims
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01 November 2003
The Department for Constitutional Affairs has published the pre-action protocol for disease and illness claims. This protocol is intended to apply to all personal injury claims where the injury is not as the result of..
Structured settlements direction
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01 November 2003
A new Practice Direction has recently come into force – it directs that in all cases where damages for future loss exceed £500,000, all parties should raise the question of a structured settlement with the..
US Risk and NCG Professional Risks
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01 November 2003
US Risk Insurance Group has taken a shareholding in the UK professional indemnity broking firm, NCG Professional Risks, based in London. US Risk Insurance is a specialty lines underwriting manager and wholesale broker headquartered in..
Insurer liability package launched
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01 November 2003
Reflecting the spread of litigation to insurers themselves, the St Paul Companies have introduced a new liability product for insurance company managers.
The coverage responds to a variety of management liability and professional risks such as..
LMA launches professional liability policy
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01 November 2003
The London Market Association (LMA) has launched a new professional liability policy for financial institutions which will become the standard product across the market.
The Worldwide Financial Institutions Professional Liability policy NMA 3000 was devised in..
US insurers under-funding asbestos reserves
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01 November 2003
The US property/casualty insurance industry remains significantly under-funded by nearly 40% with regard to reserves for ultimate, undiscounted asbestos and environmental liabilities, according to a special report released by AM Best Co.
With incurred-to-date losses of..
Insurers and solicitors agree on uplift fee
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01 November 2003
The Civil Justice Council has announced that the Association of British Insurers and solicitors’ groups have set the legal fee for a successful claim at 12.5% of the costs of the case.
The dispute, between insurers..
UK non-life market report from AM Best
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01 November 2003
Despite seemingly attractive pricing in most lines of business, the financial strength of UK non-life insurers overall remains significantly below historic levels. This reflects the twin effects of adverse loss development and asset losses eroding..
New scheme for road traffic accident claims
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01 November 2003
The Government has brought in a scheme to fix legal costs recoverable from defendants, which it says will mean speedier and more predictable settlements for the vast majority of consumers seeking redress for personal injury..
Dangers of e-mail in insurance contract litigation
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01 November 2003
E-mail is the “Achilles heel” of insurance contract litigation, according to a market briefing, “Discovery and Privilege in the Digital Age”
, hosted by the International Underwriting Association. Dennis Wade, a founding partner of insurance law..
Guidance on Directors’ and Officers’ liability cover
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01 November 2003
A number of City institutions have issued guidance for Directors’ and Officers’ liability cover (D&O). The Institute of Chartered Secretaries & Administrators, the City of London Law Society, the Association of British Insurers (ABI) and..
Equitable claim proceeds
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01 November 2003
Equitable Life can continue with its £3.3bn claim against nine of its former non-executive directors. The Commercial court dismissed the application by the directors to strike out the claims on the basis that they had..
D&O taskforce set up by AIRMIC
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01 November 2003
AIRMIC, the association for risk managers, has set up a task force in response to the soaring price of D&O insurance. The group’s remit is to investigate ways of reducing the cost of premiums and..
Commission produces occupational diseases schedule
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01 November 2003
The European Commission has produced a listing of occupational diseases. The commission is recommending that member states should, “without prejudice to more favourable national laws or regulations, introduce as soon as possible into their national..
EL crisis to stay, says AIRMIC
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01 November 2003
The Employers’ Liability insurance crisis is here to stay and could worsen sharply in the coming year, according to the Association of Insurance and Risk Managers (AIRMIC).
The current high prices reflect a long-term change in..
Stress increases risk of breast cancer
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01 November 2003
Researchers in Sweden have found that stress doubles a woman’s risk of developing breast cancer. The researchers interviewed women in the late 1960s and asked if they had suffered stress over the previous five years.
The..
UK mesothelioma deaths by geographical area
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01 November 2003
The Health and Safety Executive (HSE) has published updated statistics on work-related mesothelioma deaths by geographical area within Great Britain. The statistics are based on previously published death information covering the 20-year period 1981–2000.
The statistics..
Mutuals not always the answer
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01 November 2003
Mutual insurance may not be the answer to the current liability insurance crisis, according to Stephen James, chairman of the International Group of P&I Clubs. Mr James was speaking last month to the annual conference..
Who will insure GM crops?
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01 November 2003
A new farmers campaigning group, FARM, has carried out a survey of the principal insurance underwriters in the UK, and found that neither farmers considering growing GM crops or non-GM farmers seeking to protect their..
More claims than expected from 11 September
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01 November 2003
A US government audit of the $5.1bn victim compensation fund relating to 11 September has found that the number of personal injury claims filed as a result of the terrorist attacks could be 3,000 higher..
US risk retention groups grow
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01 November 2003
The 16th annual survey of US risk retention groups (RRG) by the Risk Retention Reporter
has revealed that the RRG annual premium for 2003 is projected to grow to $1,725.5mn, an increase of $460.4mn (36.4%)..
Terrible acronyms #57
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01 November 2003
Americans love an acronym even more than us Brits, and will often go to the extreme in order to get a good one. This is especially true of legislation, and bills are expected to have..
Medical liability crisis – the physicians’ view
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01 November 2003
The true impact of the medical liability crisis in the US was highlighted in a statement by the Alliance of Specialty Medicine to the Subcommittee on Human Rights and Wellness Committee on House Government Reform.
The..
US customers asked to waive right to sue
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01 November 2003
The Wall Street Journal
has reported on a growing trend in the US for companies to ask their customers to accept mandatory arbitration of any disputes and to waive their rights to file lawsuits. The..
Consultant warns insurers over CAW Regulations
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01 November 2003
A consultant has warned employers and insurers that they are in danger of sleepwalking into potential asbestos claims, and that insurers should assist employers to avoid claims following the new Control of Asbestos Regulations.
David Sibbitt,..
US asbestos compensation fund deal
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01 November 2003
The US federal asbestos compensation fund appears to be back on track after insurers and their industrial clients struck a deal resulting in an $114bn compensation fund. Insurers will contribute around $47bn and their manufacturing..
Asbestos warning for London market
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01 November 2003
US asbestos liabilities threaten to swamp the London market, a leading actuarial firm has warned.
According to Tillinghast-Towers Perrin, US insurers have increased their reserves for asbestos related claims by $10bn since the start of 2003...
Flight attendant loses smoking case
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01 November 2003
A court in the US has ruled that a number of tobacco companies were not liable in a case brought by a former flight attendant, who claimed that second-hand tobacco smoke on planes caused her..
Another punitive damages case set aside
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01 November 2003
Tobacco firm Philip Morris has been granted an appeal by the US Supreme Court which has set aside a ruling that the company should pay $79.5mn in punitive damages to the family of a dead..
UK’s first tobacco damages case
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01 November 2003
The widow of a lung cancer victim is finally taking Imperial Tobacco to court for damages. The case originally began in 1993 but the man died before it was completed. His widow claims that he..
EU directive on EMF risk assessment
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01 November 2003
An EU directive which has been approved by the EU Council of Ministers will require employers in the EU to carry out risk assessments to examine the risks from electromagnetic fields to employees.
Examples given include:..
Low-level carcinogen in glass baby food jars
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01 November 2003
The European Food Safety Authority (EFSA) has released a risk assessment regarding semicarbazide (SEM) in food, which reveals that SEM is present, in very small quantities, in certain foods packaged in glass jars and bottles.
The..
GPs divided over Atkins diet
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01 November 2003
Nearly 30% of GPs would advise a patient to stay obese rather than go on the controversial low-carbohydrate Atkins diet. This is according to a survey carried out by medical website onmedica.net. But 33% said..
HRT comments condemned
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01 November 2003
A German professor of pharmacology, who is also head of the German Commission on the Safety Medicines, was reported to have told a conference in the UK that HRT is comparable to thalidomide. He was..
Health scare affects HRT use
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01 November 2003
Research has found that 58% of women stopped taking Hormone Replacement Therapy after the media reported on trials showing it increased the risk of breast cancer. The research, reported in a number of papers, found..
Obesity in UK rising
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01 November 2003
Research shows that obesity in children is rising with 8.5% of six-year olds obese. In adults, nearly two-thirds of men and half of women are either overweight or obese, according to the Health Development Agency.
The..
Time for proper reflection required
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01 November 2003
The claimant claimed damages from her general practitioner for negligence. Counsel for both parties asked the judge to try the issue of negligence so that the issue of causation could be tried at a later..
Reported authorities allowed
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01 November 2003
An employee brought proceedings for unfair dismissal. At the employment tribunal hearing, the employer (a director) appeared in person. The tribunal, after hearing the parties, gave judgment in the employee’s favour, in so doing, cited,..
No duty of care if not work related
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01 November 2003
The claimant was undertaking a work placement at a hotel in Antigua. During a dive, the claimant suffered a serious injury. The dive was completely unconnected to his work.
He brought a claim against his English..
No duty of care to parents
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01 November 2003
Three appeals were heard together in which accusations of abusing a child were made against a parent by professionals concerned with the child’s welfare. Those allegations proved to be false. The parents, and in one..
Primary victim and psychiatric injury
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01 November 2003
An employee who was an active participant in an accident suffered at work, was a primary victim, and could therefore recover damages for psychiatric injury from the incident without the need to overcome the control..
Inspection of documents requires reasonable grounds
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01 November 2003
The restriction on obtaining an order for the inspection of specific documents referred to in the reports of expert witnesses prevented a party calling for disclosure without having reasonable grounds for considering that the statement..
No duty to bar access to playing fields
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01 November 2003
The court ruled that since playing fields cannot be made free of all hazards, the fact that a school had diagnosed a possible or potential hazard did not mean it was duty bound to take..
Racial discrimination award not excessive
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01 November 2003
The Court of Appeal ruled that a compensation award of £8,000, made under the Race Relations Act 1976, to an employee against an employer for injury to feelings together with aggravated damages relating to a..
Conventional sum not compensation
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01 November 2003
The House of Lords ruled that a mother with a severe visual disability who gave birth to a healthy child after a failed sterilisation operation was not entitled to claim the extra costs of bringing..
Analysis of evidence and a decision necessary
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01 November 2003
The Court of Appeal ruled that a judge hearing an action for negligence should analyse the evidence and decide which party’s case was the more likely to be correct, except in the most exceptional case.
The..
No discrimination over age limits
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01 November 2003
The Employment Appeal Tribunal ruled that the provisions of the Employment Rights Act 1966, which prohibited applications to employment tribunals by men and women over the age of 65 who wished to claim unfair dismissal..
Cost of future care calculations
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01 November 2003
Personal injury claimants could not try to show that the cost of their future care would increase at a much steeper rate than general inflation. If they did, it would amount to an illegitimate attempt..
Collective conditional fee agreements
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01 November 2003
The Court of Appeal ruled that in a case where the claimant’s litigation was funded by a third party under the terms of a valid collective conditional fee agreement, the claimant was under a legal..
Asbestos widow claim
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01 November 2003
The widow of a man who died from asbestos-related cancer has won £95,000 in damages. The man died eight years ago aged 81 from cancer of the lining of the lungs. His 88-year old widow..
Ear piercing compensation
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01 November 2003
A 13-year old boy who suffered a severe infection requiring surgery after having his ear pierced was awarded £22,000 in compensation. He was left with one ear shorter than the other, and will require further..
Damages for no referral
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01 November 2003
The family of a patient who died from endocarditis, a potentially fatal infection of the heart that affects the valves and heart chambers, has received more than £400,000 in damages. The hospital admitted liability.
Despite a..
Dog bites prison officer
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01 November 2003
A female prison officer who was bitten on the arm by a guard dog while on duty has been awarded more than £300,000. The woman was medically retired from the prison service at the age..
Dome performer’s award
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01 November 2003
An aerial performer who was seriously injured when she fell from a harness whilst performing at the Millennium Dome has been awarded £510,000 in compensation, the largest award to a performer for injury. The performer,..
Catholic school abuse damages
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01 November 2003
A former pupil at a Catholic school who was sexually abused by a housemaster is to receive more than £140,000 in compensation and legal costs from the Roman Catholic Church. The man, now 24, was..
Cyclist payment after accident
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01 November 2003
A cyclist has been awarded damages up to £5mn in an out-of-court settlement after being hit by a car. The cyclist suffered severe brain damage, paralysis in his legs and arms and is unable to..
Learning disability children win abuse case
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01 November 2003
Damages of £122,500 have been paid to five children with learning disabilities who were sexually and emotionally abused at their school. The case was settled and the council admitted liability. A support assistant at the..
Learning disability adults win abuse case
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01 November 2003
A settlement of an estimated £1mn has been agreed by a council in a group action brought by 54 disabled adults who suffered abuse, either physical or sexual, at two care homes.
It was reported to..
Awards for non-overlapping injuries not discounted
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01 November 2003
Courts may choose not to discount total awards for pain, suffering and loss of amenity where injuries do not overlap. This is according to Davies Lavery in reference to a recent case George v Stagecoach..
£3.4mn for brain damage at birth
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01 November 2003
A girl who suffered severe brain damage at birth has won £3.4mn in compensation. Staff at the hospital failed to recognise signs of foetal hypoxia. The girl, now 12, suffered partial suffocation during delivery and..
Prison officer sues inmate
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01 November 2003
A prison officer who was held hostage by an inmate with a knife has won damages of £3,500. The officer sued the inmate after he heard that the prisoner had successfully sued the council for..
£5.6mn damages for cerebral palsy child
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01 November 2003
A child with cerebral palsy has received a settlement of £5.6mn in damages. The seven-year-old received negligent care and treatment at the time of his birth at a London Teaching Hospital, according to the plaintiff’s..
Interesting challenges ahead
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01 November 2003
“The current interplay between legal environments and the insurance sector in Europe brings interesting challenges for organisations wishing to manage or transfer their risks,” said Guy Malyon, editor of the European report and managing director..
Wide variance in behaviour
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01 November 2003
According to Marsh, the UK figures reveal the wide variance between buying behaviour and costs across UK industry sectors. In nearly all cases, the average limit purchased by the UK companies surveyed was lower in..
Study findings
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01 November 2003
The study found that UK companies purchased on average 19% lower limits of cover for general and product liability insurance in 2002 and early 2003 than in the previous 12 months. Marsh explains that this..
The growing liability gap in the UK
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01 November 2003
There is a widening gap for many businesses between their potential liability risk and their insurance protection. This is according to a survey of liability limits in the UK by Marsh, ‘Limits of Liability Europe..
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