Case should stop contractors overcharging insurers, says claims management firm

A change in approach must follow the Bristol Court ruling

Case should stop contractors overcharging insurers, says claims management firm

Insurance News

By Terry Gangcuangco

The numbers don’t add up: A court case revealed contractors overcharged an insurance company for highway infrastructure damage.

A claim made to an insurer was reduced after a Bristol Court judge found that contractors used by Highways England presented inflated costs compared to what was charged to the government-owned company, according to a Claims Media report.

Staff of contractor Kier Highways charged the cover provider almost three times the amount it charged Highways England – a concern Claims Management & Adjusting (CMA) said it had raised before.

“We have gathered clear evidence of this excessive charging, repeatedly voicing our concerns to Highways England about not simply accepting the costs their contractors present,” said CMA managing director Philip Swift, as quoted by the report.

For Swift, a change in approach must follow the Bristol Court ruling.

“If not, there are potentially thousands of similar cases, which will end up in court,” he said. “This would not only be a drain on the public purse, it would also be an additional expense for insurers which will ultimately push up premiums – a double whammy for the motoring taxpayer.”


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