Welcome to the first Goodrich Insurance Newsletter

Welcome to our monthly newsletter! In this edition we advise you on how to avoid falling victim to the new 'crash for cash' scam fraudsters are using, discuss the number of older motorists who could face prosecution through failing to disclose medical conditions, tell you about the rise in travel insurance claims following the February skiing trips and discuss the proposed reforms for noise induced hearing loss claims handling. We hope you enjoy our newsletter.

Warning! How to avoid falling victim to the 'crash for cash' scam

Costing around &400m a year, ‘crash for cash’ scams are run by fraudsters that stage or deliberately cause a road traffic collision, often with innocent road users, hoping to profit from fraudulent insurance claims. Claims from a single collision can potentially be worth tens of thousands of pounds, organised fraudsters are staging multiple scams that involve multiple collisions and can be worth millions of pounds.

Crash for cash scams are not a victimless crime and as honest policyholders we pick up a collective bill for fraud through increased premiums. However, how do you know when you’ve been victim to a genuine collision, or if you’ve been the latest target of these conmen?

The tell-tale signs you’ve been in a crash for cash scam:

- The other driver is far too calm for someone that’s been involved in an accident

- They have already written down their insurance details before the accident happened

- Any injuries appear to be completely at odds with the force of impact

How can I prevent myself from being a target?

Remember the wise words of your driving instructors- drive safely and pay attention at all times! Keep your distance from the car in front and always anticipate the road (and any potential hazards) ahead. The better and safer you drive, the less excuse you give the fraudsters to target you.

What to do if you think you’ve been targeted:

- Note as much information as you can about the event, the driver, any passengers and the circumstances. Some fraudsters will invent ‘invisible’ passengers when it’s time to contact the insurers so they can claim a bit more.

- Take photos of the incident, if you are able to

- Call the police and report your suspicions

- Call the IFB’s cheatline on 0800 422 0421

And if you think ‘crash for cash’ is a good idea…

Punishments for fraudulent claims are harsh and the consequences are long-term. You’ll likely get a ‘fraud mark’ added to you driving license, not only voiding your current car insurance but meaning you’ll be paying much higher premiums for years to come. Some face imprisonment, driving suspensions, unpaid work and costs in excess of &1000.

1 million older motorist face prosecution by failing to disclose medical conditions

New research from Direct Line Car Insurance reveals almost three in ten (28 percent) older motorists have medical conditions such as visual impairments, diabetes, heart conditions or epilepsy that must be disclosed to the DVLA. Despite this, almost half have failed to tell the DVLA about their condition.

Of those over 65 that have failed to disclose their conditions, most say this is because they don’t feel their condition affects their driving. One in eight say they weren’t aware of this obligation and 27 percent cite ‘other’ reasons.

While the insurer’s study raises concerns about the number of older motorists that could be driving without a valid licence, over 65s are by no means alone. Across the UK as a whole, a quarter of drivers have so called ‘notifiable conditions’ but one in 10 have not disclosed this to the DVLA.

Gus Park, director of motor at Direct Line commented: “Regardless of age, drivers that have a notifiable or worsening medical condition or disability must disclose this to the DVLA and also to their insurer to stay within the law. Even those who feel their physical status won’t affect their driving must still disclose their condition, as failing to do so means they risk a hefty fine and even prosecution if they have an accident.

“The issue of failing to disclose medical conditions is particularly prevalent amongst older motorists but the rules are the same regardless of age, experience or the severity of a medical issue. We’re urging anyone that thinks they may have a condition or a disability they need to disclose to contact the DVLA and their insurer as they risk invalidating their licence and insurance if they don’t.”

Direct Line’s study looked at the prevalence of some of the most common medical conditions that should be disclosed and found that physical disabilities – affecting a tenth of older drivers - are only disclosed half of the time.

There are currently four million drivers with a full licence aged 70 or over and 230 drivers aged 100 or above.

What conditions must you declare?

- Dementia

- Diabetes- it it’s insulin-treated

- Parkinson’s

- Epilepsy

- Any chronic neurological condition, such as multiple sclerosis

- Any condition that affects both eyes, or total loss of sight in one eye

Other health conditions may need to be declared, depending on what kind of license you have and how the condition affects you. Check the GOV UK website for a full list of medical conditions and disabilities you must declare.

If you don’t declare a condition you could face prosecution and it could even invalidate your policy.

February see's travel insurance claims go sky high as families hit the slopes

February half terms is the most dangerous time of the year for a trip to the slopes, with more than twice the average number of winter sports travel claims compared to the rest of the ski season.

New research also reveals that six out of ten (57%) parents would consider taking a winter ski break with their family because of the fun activities for children and the fitness benefits. Also, one in eight say they would consider winter sports holidays because summer breaks during school holidays are too expensive.

Health and safety at winter resorts is a top priority for many parents, with more than half admitting that either they or an immediate family member has suffered an accident or near-miss while on the slopes. However, more than half say they only sometimes take out travel insurance when going on holiday with their family, with similar numbers saying they don’t always check they have cover for winter sports.

Downhill skiing is one of the world’s most popular winter sports. However, it also carries a high risk of injury. Most investigators agree that younger skiers are at increased risk. Children have a higher rate of ski-related fractures of the lower extremities than adults. Spiral fracture of the tibia is most common in children. In a five year retrospective study of patients younger than 19 years, who had been admitted to a trauma center after a skiing accident, 58% had been involved in collisions with stationary objects. Helmet use was negligible.

A medical emergency is the most common reason for claiming on winter sports insurance and the cost of treating minor injuries can be surprisingly expensive- the average cost of a winter sports claim is around &1000. The cost of bringing someone with a damaged spinal cord back home to the UK by air ambulance could be in the region of &20,000, from the European Union.

We use a range of travel insurers to help provide a policy that is suitable for any upcoming trip. We can arrange bespoke or inclusive covers and tailor it to your personal needs.

Proposed reforms for noise induced hearing loss claims handling

The government claim portal introduced in 2013 limited lawyers costs for straightforward liability claims. The reforms did not cover noise induced hearing loss claims because hearing damage can occur over many years whilst a claimant works for a number of employers. This resulted in lawyers actively encouraging noise induced hearing loss claims to be made by individuals who have worked in noisy environments. The Association of British Insurers (ABI) estimates that for every &1 paid in compensation to a claimant, at least &3 is paid to the claimants’ lawyer. Clearly claimant lawyers are still keen to take these claims, as they are a good source of income.

According to the ABI the number of noise induced hearing loss claims increased by 189% between 2011 and 2014. Whilst the number of new claims is starting to slow, the ABI is calling for further reforms to ensure that only genuine claims are made. The reforms suggested by the ABI include a ban on cold calling, rules to ensure a consistent standard of audiologists in a similar scheme as specialist who diagnose whiplash and fixed legal fees for claimant lawyers.

Many claims for noise induced hearing loss fail. The claims fail due to poor of quality evidence, as the claimants hearing damage cannot be definitely linked with their employment. To successfully defend claims, a business has to keep good records, we recommend:

- Records of locations that employees worked in and employment dates linked to noise assessment results and noise maps

- Records of personal noise exposure levels of employees

- Records of the hearing protection types provided and the attenuation of noise exposure resulting from the hearing protection equipment provided

- Records of pre-employment audiometry, audiometry sessions during employment and a record of the audiometric test on leaving employment

- Records of disciplinary procedures relating to non-compliance with noise control procedures

Every employer in the UK must have Employers’ Liability cover in place in order to protect all parties in the instance that an employee is injured, impaired or suffers disease during employment. We can help you manage this obligation with minimum effort and help to ensure you have the appropriate cover in place.