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The UK has long been considered
a ‘compensation culture’. Take for
example whiplash claims – in the
UK, 75% of personal injury claims are
for whiplash. In France, these claims
account for just 3% of the overall
claims total.
Part of this culture is blamed on
the introduction of ‘no win no
fee’ arrangements (Conditional
Fee Agreements) in 2000 which
encouraged claimant solicitors and
Claims Management Companies
(CMCs) to chase after more claims, the
latter with variable care whether the
claim itself was genuine.
Since then, the government has taken
a number of steps to ease the problem.
In 2013 for example, steps were
introduced to significantly reduce and
fix the amount of costs a solicitor could
recover in the majority of non-disease
claims and the payment of referral fees
to CMCs were banned.
However, this meant the number
of disease claims rose as a result –
these type of claims became the most
lucrative personal injury claim. Noise
induced hearing loss (NIHL) claims in
particular became the most profitable
volume PI claim type and by a
significant margin; in 2013 a claimant’s
solicitor’s average costs in a low value
whiplash claim were £500 but in a
similar value NIHL claim were £10,500.
There is further redress underway – on
28 January 2016, Lord Justice Jackson
set out his blueprint to implement fixed
costs in all personal injury claims up
to £250,000 in value, referring to it as
“unfinished business” and suggesting
roll-out before the end of 2106 although
notably not on a retrospective basis.
Why businesses are vulnerable
Given Jackson LJ’s proposed reform
we are certain to see a massive push
by CMCs and claimant solicitors to
locate as many potential disease
claimants as possible and sign them
up before these changes take place.
Claimant solicitors, fearful of losing
Logistics firms in the UK need to be ready to face increasing
’disease’ compensation claims from employees. Paul Debney,
Partner at Weightmans LLP, explains.
their incomes, will be desperate to
enjoy the last hurrah of the current
regime and to move to whatever claim
type appears most lucrative.
Given the noisy nature of the work in
many warehouses and similar facilities,
businesses in the logistics sector are
particularly vulnerable to spurious
deafness claims, as well as other
disease claims such as repetitive strain
or respiratory issues due to dust and
fumes.
What businesses need to do
You must ensure you have robust,
watertight processes in place in case
an employee does make a claim
and generally compliance with HSE
guidance will suffice. If the claim
is genuine and a process requires
amendment that should be undertaken
immediately to prevent further harm. If
you suspect the claim is false you need
to ensure you have all the evidence
to fight it. Failure to have a process
in place will inevitably mean the right
documents are not kept, the records
are scant and your defence is weak.
n
Firstly, you should investigate the
claim before it becomes official if
you can – gathering and protecting
any relevant documents which might
exist including CCTV footage (which
is otherwise often overwritten),
photographs of the process/ scene,
risk assessments or work process
instructions in place at the time of
the alleged exposure (which are
again frequently overwritten).
n
Capturing details of all of the
witnesses early on, with contact
details, can avoid later complication
caused by “new” witnesses later
“appearing” or original witnesses
disappearing.
n
Be quick - investigating as soon as
possible means you have the best
chance of sniffing out fraud.
Ensuring you carry out a full and
proper investigation will ensure that
weak claims are repudiated – this is
especially important over the next few
years as CMCs and claimant solicitors
actively seek out personal injury claims
from employees before their activities
are curtailed.
Compensation claims
12
Logistics Business Magazine | February 2016
HEALTH AND SAFETY