The Association of British Insurers has launched a new voluntary
code of practice relating to so-called third party capture.
The practice is typically used in motor claims where the
insurer's policyholder is at fault. It can also be used for
accidents at work or in 'trip and slip' public liability claims
where there is an element of personal
injury.
The new code bans unsolicited visits to unrepresented claimants
at home or in hospital and states that initial contact must be made
through telephone, text, email or letter.
The association has also published a consumer guide for
claimants.
"We have sent evidence to the Financial Services Authority to
illustrate occasions when insurers have quite clearly attempted to
under-settle claims in these circumstances," said Lyons. "We have
also heard about quite shameful pressure to settle being brought to
bear on vulnerable and injured people.
"The insurance industry is now euphemistically calling this
'third party assistance', but what many people won't realise or
remember, often because they are shocked and vulnerable at the
time, is that insurers' primary duty is to their shareholders, not
the injured person," he said. "This obviously puts them in direct
conflict with the victim."