chapter 7 Flashcards
What is the four-point test in negligence?
1) Duty of care, 2) Breach of duty, 3) Causation, 4) Damage suffered.
How does Froom v. Butcher (1975) affect seatbelt claims?
A: Not wearing a seatbelt can reduce compensation:
25% reduction if injury was entirely preventable.
15% reduction if injury was worsened by not wearing a seatbelt.
What did Smith v. Finch (2009) decide about cyclists?
A: Cyclists may have damages reduced if not wearing a helmet, but only if it made a difference to the injury.
What does Groom v. Crocker (1939) say about admitting liability?
Insurers must not admit liability without the insured’s consent.
What is the purpose of the Pre-Action Protocols?
Encourage early settlement and openness before court proceedings.
What are the three court tracks for claims?
Small Claims Track – Up to £10,000 (personal injury: £5,000).
Fast Track – £10,000–£25,000, simple cases.
Multi-Track – Over £25,000 or complex cases.
What is a Part 36 Offer?
A settlement offer that can impact legal costs if rejected.
How did the Civil Liability Act 2018 change injury claims?
Increased small claims limit (from £1,000 to £5,000).
Introduced a whiplash injury tariff for claims lasting ≤2 years.
What are special vs. general damages?
Special damages – Measurable financial losses (e.g. medical bills, lost earnings).
General damages – Non-financial losses (e.g. pain, suffering, future losses).
What do the Ogden Tables help calculate?
Future loss compensation based on life expectancy.
How has the discount rate changed?
2001: 2.5%
2017: -0.75% (massive increase in payouts)
2019: -0.25% (slight correction)
2021 (N. Ireland): -1.75% (interim)
What is a structured settlement?
A lump sum plus regular payments to provide financial security.
What is a provisional damages award?
A court order allowing a claimant to return for more compensation if their condition worsens.
What is rehabilitation in claims?
Early intervention to aid recovery and reduce long-term claim costs.
What governs rehabilitation in claims?
The Rehabilitation Code 2015, which encourages early intervention for recovery.
Why was the Ogden Discount Rate reduced from 2.5% to -0.25%?
To reflect lower investment returns, ensuring claimants are not under-compensated for future losses.
What is a ‘bereavement award’?
A fixed sum paid to close relatives (currently £15,120 in England & Wales).
What are the key sources of claims philosophies?
Insurance Conduct of Business Sourcebook
Lloyd’s Claims Management Principles &
Minimum Standards
ISO 9001 accreditation for quality management
What key organisations combat insurance fraud?
Insurance Fraud Enforcement Department (IFED) – Dedicated police unit
Insurance Fraud Register (IFR) – Database of proven fraudsters
National Fraud Authority – Executive agency of the Home Office
ow do courts differentiate between gross exaggeration and ordinary exaggeration?
Gross exaggeration = Strong evidence of fraud
Ordinary exaggeration = Often a negotiation tactic, not necessarily fraud
What is the overriding objective of the Civil Procedure Rules (CPR)?
To ensure cases are dealt with justly, including:
Equal footing for both parties
Proportionate costs
Fair and efficient resolution
What would a claim for general damages typically include?
The future loss of earnings.
What does the Motor Insurance Anti-Fraud and Theft Register record?
a.
All motor claims received by insurers where a payment [excluding windscreen claims] has been made.
b.
All motor vehicles that have been the subject of a total loss claim or have been stolen and not recovered.
c.
All motor claims received by insurers where fraud is suspected.
d.
All motor claims received by insurers.
All motor vehicles that have been the subject of a total loss claim or have been stolen and not recovered.
Corporate Claims Philosophy
A vision and set of values aligned with overall business objectives, serving as a mental picture of desired outcomes
What is ISO 9001
An internationally recognised standard for quality management
