NOTES FOR EMPLOYERS ON NEW LEGISLATION

1. The Woolf Commission
2. The Ogden Tables
3. Employers Liability Regulations 1998
4. PUWER & LOLER 1998

If you require further details regarding any of the following, please contact us.

1. THE WOOLF COMMISSION

April 26^th 1999 marks the date of the most significant change to the civil justice system in England and Wales in living memory.

The changes are the result of a report into the civil justice system under the auspices of Lord Woolf.

SUMMARY OF MAIN CHANGES

From April 1999 all claims will be allocated into one of three tracks, i.e.

1. Small Claims Less than £5,000 property and / or less than £1,000 for injury

2. Fast Track £5,000 to £15,000 property and £1,000 to £15,000 injury

3. Multi Track All claims over £15,000, plus more complex lower value claims not suitable for fast track.

The majority of claims will fall into the Fast Track category, these will be subject to Pre Action Protocol, the key feature being:

Claimants solicitors must let defendants have minimum levels of information in a formal letter of claim. This will bring significant improvements to the claims handling process, as it will allow speedier decision making and greater co-operation between parties.

Within 21 days of this letter, the defendant / insurer must reply, confirming their interest.

Thereafter, the defendant / insurer has three months to investigate the claim and reach a decision on negligence. If negligence is disputed, the reason must be explained and documentary evidence provided.

The rules require that parties attempt to reach agreement on choice of mutually agreeable experts – reducing the number and cost of reports.

KEY POINTS FOR EMPLOYERS

REPORT ALL CLAIMS / INCIDENTS IMMEDIATELY

RETAIN ALL EVIDENCE - i.e.

• Accident Book Entry

• First Aider Report

• Surgery Report

• Foreman’s / Safety Officers Report

• HSE Documents

• Photos / Sketch plans

• Security Videos

• Documents to comply with the requirements of the management of Health and Safety at Work Regulations 1992

KEY POINTS FOR MOTOR FLEET MANAGERS

RETAIN ALL EVIDENCE –i.e.

• Documents identifying the nature, extent and location of damage to your vehicle

• Sketches / Photos

• MOT Certificate

• Maintenance Records

• Tachograph charts or entry from individual control book

2. THE OGDEN TABLES  

Personal Injury claims are set to rise as recent court cases set a precedent for higher personal injury payment.

The Ogden Tables are a new measure for assessing life expectancy. Sir Michael Ogden QC who chaired the working party that created them, has since campaigned for their acceptance by the courts.

A recent ruling, Wells v Wells, has imposed an increase in the multiplier used to settle damages.

This has been directly linked to the reduction in the investment rate recommended by the House of Lords. The rate is now to be set at 3% which is a reduction from the 4.5% previously assumed and reflects changes in the economy.

The new rate reflects one that a claimant could reasonably expect to achieve on their investments. The effect is retrospective and apples to all outstanding personal injury claims regardless of when the accident happened.

Example

Mr X is 17 at the settlement of his claim. He will never work again and needs carers to maintain standards of living.

The cost of care is £40,000 pa, His wage before the accident amounted to £12,500. He would have worked until 65 and may live until 75. Before the Ogden changes his settlement would have been £952,000, but now will be £1,392,725. This represents am increase in the claims value of 46%. Insurers have recognised this and Liability Premiums are rising and will no doubt continue to do so.

3. EMPLOYERS LIABILITY REGULATIONS 1998

A Change in the law has affected your Employers Liability Insurance.

Key Changes and Important Notes for Employers,

From 1^st January 1999

• The minimum cover for Employer’s Liability Insurance has been increased from £2M to £5M

• The minimum limit of cover shown above applies to both the holding company and any subsidiaries together, as though they were a single employer. Associated companies must have their own cover.

• Employer’s Liability Certificates must be kept for 40 Years

• You must be able to obtain a copy of the certificate for any employee working offshore.

• The minimum limit of cover must be shown on the certificate

• If you have subsidiary companies the certificate must name the companies or state that all subsidiary companies are covered.

4. POWER AND LOLER REGULATIONS 1998

The PROVISION and USE of WORK EQUIPMENT REGULATIONS 1998, apples to all machinery, appliance, apparatus, tool or installation for use at work. PUWER 1998 replaces PUWER 1992, the main difference being the inclusion of specific requirements for mobile plant, power presses and wood working machinery. All users must carry out risk assessment and make sure that all equipment is both safely installed and safe to use.

In addition to PUWER there are also requirements for equipment with a lifting function and these are covered by separate regulations – the LIFTING OPERATIONS and LIFTING EQUIPMENT REGULATIONS 1998 (LOLER)

All users are required to:

• Have a competent person to plan lifting operations
• Ensure that the equipment is suitable
• Assess requirements for inspections of the lifting equipment and accessories
• Have regular inspections carried out by a suitable person

Both sets of regulations apply to all employers and any self employed person who uses work equipment and, in addition, to any person who has control of a non domestic premises used as a place of work. ##