“Clearly, insurers will need proof that a customer’s car was actually in the car park, but this must not become a cold, bureaucratic response.”
These were the words of Liverpool mayor Joe Anderson, in a message to the Association of British Insurers (ABI), as he called for speedy claims processing in the aftermath of the New Year’s Eve fire that destroyed more than a thousand vehicles. According to a report by the
Liverpool Echo, Anderson described the circumstances as “extraordinary” and, thus, they should elicit an extraordinary response from motor insurance providers.
“We are all in uncharted territory in responding to such an unprecedented event and I would ask you to press upon your members the need to respond with the same imagination and generosity of spirit shown by the people of Liverpool in their initial response to the fire,” Anderson told ABI director general Huw Evans in his letter, as quoted by the report.
And with “imagination” he meant in terms of validating claims, suggesting ideas such as the use of parking tickets to serve as documentation.
“Some car owners whose vehicles were in the car park are reporting that their insurance companies are being less than helpful when it comes to processing claims,” wrote Anderson. “They are being told to ‘contact the council’ to produce proof substantiating their claim, without being given clarity about the relevant information needed to assess the claim.”
Meanwhile a larger estimate of the cost to insurers has been revealed. ABI cited a potential payout of £20 million worth of motor insurance claims – a much bigger projection compared to the initially reported
£2 million forecast by an industry insider.
“Insurance exists for just this sort of event, and insurers were working hard over the bank holiday to get on with processing people’s claims as quickly as possible,” said ABI head of motor and liability Rob Cummings. “Customers affected should be reassured that insurers are expecting to pay out around £20 million to help get them back on the road.”
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