Against the backdrop of continuing pressures in employers' liability (EL) insurance, AIRMIC plans to collect statistical information from its members about the breakdown of their EL claims. The aim is to find out what proportion of the amounts paid reach the injured or sick worker and how much is absorbed in legal and administrative costs.
Whatever reforms are proposed to the EL system, AIRMIC believes that the best way to cut the cost of EL insurance is to reduce the number of claims. Otherwise, the cost of losses is only likely to increase. In addition to medical cost inflation of around 12% a year, the Government wants employers to bear more of the total cost of treating sick and injured employees through measures like clawing back NHS treatment charges.
AIRMIC says employers should not react passively to this pressure. They can take action to reduce the probability and severity of claims. A strategic approach to health and safety begins before employment and carries through to rehabilitation to get people back to work if they are injured or sick.