Archive for category: General News

After a warm December the UK is now facing a fairly cold January. The Met office has warned of temperatures plummeting and showers of snow are to hit the UK during the coming days.

With the colder weather comes the dreaded need to defrost the windscreen on your vehicle before you can set about your day so we have created some handy tips which can help you start your day a smoother way.

DO NOT leave your vehicle unattended while the engine is running as you become an easy target to vehicle thieves.  If you need to leave your vehicle we advise it is best you turn the engine off and lock the vehicle.

DO NOT drive your vehicle until the windscreen is completely defrosted and you have full visibility out of the windows.

DO NOT pour boiled/hot water to your vehicles windscreen as the dramatic change in temperature can cause the glass to crack.

DO NOT use newspaper or any other paper to cover your windscreen over night as this can become stuck to the glass.

DO make sure you have a bottle of de-icer or windscreen wash that contains de-icer and a scraper which is the main recommended way to remove unwanted frost.

DO use the air conditioning in the vehicle as this will stop the glass becoming misty

DO use the heating to gently heat and circulate the air conditioning which will help to melt the frost

DO use a lint-free or soft absorbent cloth to wipe misted windows – we advised you refrain from using your hands or rough cloths as it may result in the glass becoming scratched

DO try to plan ahead – allow yourself an extra 20-30 minutes before your journey to defrost/ice your vehicle – invest in a windscreen shield to place on the vehicle while not in use.

Storm Frank has wreaked havoc for many parts of the UK and it is said to continue further with the Environment Agency for England and Wales issuing nine “severe” flood warnings (potential loss of life) that started on Boxing day.

KPMG, professional services firm have estimated that the clean-up cost could peak to £5.8 billion which includes insurance losses. KPMG have advised that it is working with companies and organisations across the North as they respond to current flooding.

Insurance giants could face up to £1.5 billion in losses due to the damage caused by the recent floods which has affected their shares in the London Stock Market. So far More Than owner RSA insurance fell by 2% in the market followed closely by Aviva who was down 0.5% and things are not looking good as Storm Frank continues to bring bad news.

UK head of general insurance management consulting at KPMG, Justin Balcombe has said: “The scale of the flooding over the last few weeks has seen communities across large sections of Northern England, Wales, Scotland and Ireland severely impacted.

“In 2007 when a similar pattern of flooding hit, total insured claims were £3.2 billion; however, we consider that the actual financial impact far exceeded this.”

“We are assessing this month’s events through a number of economic lenses, resulting in an initial total cost estimate of £5 billion to £5.8 billion.”

Insurance firms large loss expectations for 2015 would have been closely met due to the last two storms Desmond and Eva according to general insurance leader Mohammad Khan at PricewaterhouseCoopers (PwC).

Mr Khan also added “any further damage caused by additional rain will impact relevant insurers’ year-end profitability”.

“It is too early to say whether it causes the 2015 profitability of the household and commercial property business they write to be loss-making,”

It has been claimed, by economist Howard Archer at IHS Global Insight, that with businesses not being able to open, loss of agricultural output and public accessibility to shops, the economy growth could be affected by between 0.2% and 0.25%.

He went on to state that “As the flooding is occurring late on in the fourth quarter, some of this negative impact is likely to occur in the first quarter of 2016.”

With that being said he advised that the economy should receive a boost in growth next year, mainly focusing on the first three months, when the clear up begins and from replacement purchase spending. This should hopefully partly offset the loss seen prior.

It has also come to light by KPMG that around £1 billion from their figures accounts for policyholders under insuring their goods and property as people still feel the effects of the recession wanting to reduce insurance premium payments. Another big issue surrounding the under insurance is the Christmas timing, as people may not have increased their content values for presents and food over the festive period.

Whiplash claims for whiplash increased up to 9% on 2013-14 but with new plans being unveiled motorists could save up to £1billion a year which could result in insurance bills being reduced by £50.

Ministers are looking to ban compensation for minor whiplash injuries in car accidents to stop the ever increasing number of fraudulent claims being made which add an estimated £93 to every households overall insurance bill every year.

The Ministry of Justice are in the process of drawing up plans to put a stop to a person’s right to make a cash claim for minor injuries but instead the claimants may only have rehabilitation treatment funded which will save motorists around £1billion a year.

As it stands personal injury lawyers are able to take minor cases to the small claims court from as little as £1,000 however under the new rules this threshold will increase to £5,000 which will also show a reduction in legal costs.

It seems that this could be great news for people who pay for insurance premiums as the Government predict that the new regulations could cut up to £50 off of car insurance as the new regulations aim to reduce bogus claims and unnecessary pay outs. With this good news, leading insurers have promised to pass on savings to their customers.

MP’s have described the UK as the ‘Whiplash Capital of Europe’ as 80 percent of road traffic accident injuries involve some form of whiplash – compared to a shocking 3 per cent in France. The new measures are designed to eliminate the dishonest claims and also the exaggerated injuries as a result of car accidents and bring that 80 per cent right down.

Justice Minister Lord Faulks said: ‘We are determined to crack down on the culture of fraud and exaggerated claims in the motor insurance industry, which means car owners are forced to pay higher premiums to cover the false claims of others. This culture is boosted by an industry that encourages exaggerated claims through cold calling and it is right that we tackle this.’

Mark Wilson, chief executive officer of Aviva, the UK’s largest insurer, said: ‘We welcome this bold and necessary step by the Government on behalf of honest people – it is all about standing up for the consumer against the fraudsters.’

‘The Government is putting the brakes on the whiplash gravy train. Sadly, law abiding motor customers have paid for the UK’s dysfunctional and fraudulent motor claims system through inflated motor premiums.’

It seems the Government are clapping down heavy on how law firms and management organisations obtain new clients as they have now been banned from using certain marketing tactics such as offering luxury items like iPads and shopping vouchers to ‘victims’.  They have also placed a ban on these firms offering referral fee’s to insurance companies.

The law firms are also facing a clamp down on the fee’s the companies can receive for these claims as well as there now being a list of approved independent doctors to assess the victim’s injuries.

James Dalton, director of general insurance at the Association of British Insurers, said: ‘The Government reforms are a significant breakthrough in tackling the UK’s compensation culture and are good news for motorists.

‘The end to cash compensation, for low value injuries, will help to bring down unnecessary costs in the motor insurance market and honest motorists should be the beneficiaries.’