There have, over the years been many incidents whereby insurers have deemed it more financially prudent to concede a claim and make an out of court agreement to settle a claim that fight the case in court.
High Court Litigation can cost an extortionate amount of money and even insurers think twice before taking such action.
There are however such instances, when priciples are involved, and it is from this angle that some peole are now pushing for a fighting fund to be set up and managed by the Association of British Insurers (ABI) to avoid settling test cases too soon.
The man behind the request, Declan Treanor, chief executive of Garwyn Loss Adjusters has called on insurers to build a “fighting fund” to avoid settling test claim cases prematurely.
Mr Treanor is coming at it from the position of ensuring all companies, irrespective of their size, should have access to money to allow them to challenge any case, particularly where winning a relatively small case, there will be a long-term benefit to the industry.
Mr Treanor also said that at the moment, whilst smaller insurers had less money to take a case to the High Court, the larger companies had sufficient resources to pick their fights.
Consider These:| Are you looking for luggage |