As a member of the Consumer Justice Alliance (CJA) we at ARAG were very interested in seeing the video that they have just produced and released on YouTube. Called ‘Fighting for access to justice’ it looks at how the CJA are campaigning against the Government’s proposals for changes to civil litigation as presented in the LASPO Bill.
More importantly victims of accidents and medical negligence are invited to discuss their experiences and how their lives have been transformed not only by their illnesses or injuries but how they managed to turn it around thanks to the compensation and support they received as a result of being able to claim through the current system.
As one victim of medical negligence describes in the film, “changing the funding regime will make it harder for people to have their claim properly investigated and also for the hospital to change the practices that allowed it to happen and deny them full compensation for the loss they have suffered.”
The risk of having to pay for legal fees should the decision go against you would have been too much of a barrier for the people speaking in the film and they all explain that this is not a risk that they could have taken.
Nigel Meurs-Raby, Chairman of the CJA concludes the film by saying, “These are real people who are real victims with injuries that are not their fault. We need to do everything that we can to make sure that this dreadful new legislation doesn’t end up on the statute book.”
Watch the video in full here: http://www.youtube.com/watch?v=gtvMdYOu3Ks&feature=related
Thursday, 17 November 2011
ARAG shortlisted at the 2011 Personal Injury Awards
ARAG is pleased to announce that we have been shortlisted at this year’s Personal Injury Awards in the ‘Insurance Provider of the Year’ category. Having previously won this award in 2009 we are keeping our fingers crossed for 24 November when the awards will be held at The Riverbank Park Plaza in London.
ARAG’s existing After-the-Event (ATE) product is known for offering flexibility and quality to ensure that customers’ needs are met and hopefully exceeded. In addition to this, ARAG also look for and implement innovative ideas and in 2011 we created and launched a new product – Recourse Options.
Our original product Recourse provides a standard limit of indemnity covering third party costs and disbursements, whereas Recourse Options is tailored to the specific indemnity required to cover third party costs, disbursements and own sides costs in non-injury cases. Some of the key features include:
There is also an easy-to-use online policy application and administration system designed to make life easier for our solicitor partners. This is currently in the process of being developed to enable solicitors to update cases from their own system rather than having to log in to gATEway as well as increasing its scope to offer post-issue schedules for RTA cases.
If you would like more information on ARAG’s ATE products please visit: http://www.arag.co.uk/index.asp?m=93&s=159&t=After%2Dthe%2DEvent+Legal+Insurance
ARAG’s existing After-the-Event (ATE) product is known for offering flexibility and quality to ensure that customers’ needs are met and hopefully exceeded. In addition to this, ARAG also look for and implement innovative ideas and in 2011 we created and launched a new product – Recourse Options.
Our original product Recourse provides a standard limit of indemnity covering third party costs and disbursements, whereas Recourse Options is tailored to the specific indemnity required to cover third party costs, disbursements and own sides costs in non-injury cases. Some of the key features include:
- Limits of indemnity to meet the specific risk
- Cover by an A-rated insurer
- Contingent premium – the premium is deferred until conclusion and only payable upon a successful conclusion
- Top-up cover to a Before-the-Event policy
- Cover for cases conducted under a partial or full CFA
- Premium shortfall cover
- Bespoke staged premiums
There is also an easy-to-use online policy application and administration system designed to make life easier for our solicitor partners. This is currently in the process of being developed to enable solicitors to update cases from their own system rather than having to log in to gATEway as well as increasing its scope to offer post-issue schedules for RTA cases.
If you would like more information on ARAG’s ATE products please visit: http://www.arag.co.uk/index.asp?m=93&s=159&t=After%2Dthe%2DEvent+Legal+Insurance
Wednesday, 9 November 2011
ARAG responds to ruling on insurers’ use of non-panel solicitors
Following the High Court’s Judgment in the case of Brown-Quinn & Webster Dixon -v- Equity Syndicate Management, ARAG Legal Services has issued its reaction to the decision.
The Bristol-based legal expenses specialist warned that the court’s decision was not a positive one and, without any evidence to suggest that non-panel law firms offer higher standards of representation, the main beneficiary of the ruling would be the non-panel law firms themselves. The court’s decision could also result in higher legal expenses premiums.
ARAG’s Managing Director Tony Buss commented: “With no evidence to suggest non-panel firms deliver a heightened level of service to the policyholder, those firms may well be the only long-term beneficiaries from the Judgment. At a time when, the take-up of BTE is being encouraged, this cannot be a positive development overall.”
Many legal insurance providers will now consider their policy wordings and whether they are consistent with the judgment, especially where they have chosen to expressly limit the costs payable to those which their panel lawyers charge.
ARAG’s policies fully comply with the decision. In addition, legal insurance providers will need to be sure that their approach in practice complies with what their wordings actually say. It seems in this case that the defendants' approach was at odds with the policy wording and also perhaps the result of too ambitious an interpretation of The Insurance Companies (Legal Expenses Insurance) Regulations 1990.
Even with cases handled by its panel, ARAG does not take a "one size fits all" approach, and has arrangements for higher remuneration rates for more senior lawyers when circumstances demand it. This also extends to how we contract with non-panel solicitors, where again, we will, where appropriate, agree a higher rate, be that an aggregate hourly rate, or a variety of rates.
That is not to say that ARAG embrace the appointment of non-panel firms. Unless the complexities of the case warrant the appointment of a non-panel firm, we are confident that our policyholders receive at least as high a level of service from our panel firms as they would their chosen lawyer, but at a fraction of the cost. That cost, as the Judgment recognises, is reflected in the very modest premiums policyholders currently pay for before-the-event (BTE) legal insurance. The obvious danger therefore arising from this Judgment is that policyholders wanting to use their own solicitor will see their financial position strengthened when looking to insist on their own solicitor acting. The consequence of this is increased exposure to the insurer which is likely to be passed on to policyholders in the form of higher premiums.
The Bristol-based legal expenses specialist warned that the court’s decision was not a positive one and, without any evidence to suggest that non-panel law firms offer higher standards of representation, the main beneficiary of the ruling would be the non-panel law firms themselves. The court’s decision could also result in higher legal expenses premiums.
ARAG’s Managing Director Tony Buss commented: “With no evidence to suggest non-panel firms deliver a heightened level of service to the policyholder, those firms may well be the only long-term beneficiaries from the Judgment. At a time when, the take-up of BTE is being encouraged, this cannot be a positive development overall.”
Many legal insurance providers will now consider their policy wordings and whether they are consistent with the judgment, especially where they have chosen to expressly limit the costs payable to those which their panel lawyers charge.
ARAG’s policies fully comply with the decision. In addition, legal insurance providers will need to be sure that their approach in practice complies with what their wordings actually say. It seems in this case that the defendants' approach was at odds with the policy wording and also perhaps the result of too ambitious an interpretation of The Insurance Companies (Legal Expenses Insurance) Regulations 1990.
Even with cases handled by its panel, ARAG does not take a "one size fits all" approach, and has arrangements for higher remuneration rates for more senior lawyers when circumstances demand it. This also extends to how we contract with non-panel solicitors, where again, we will, where appropriate, agree a higher rate, be that an aggregate hourly rate, or a variety of rates.
That is not to say that ARAG embrace the appointment of non-panel firms. Unless the complexities of the case warrant the appointment of a non-panel firm, we are confident that our policyholders receive at least as high a level of service from our panel firms as they would their chosen lawyer, but at a fraction of the cost. That cost, as the Judgment recognises, is reflected in the very modest premiums policyholders currently pay for before-the-event (BTE) legal insurance. The obvious danger therefore arising from this Judgment is that policyholders wanting to use their own solicitor will see their financial position strengthened when looking to insist on their own solicitor acting. The consequence of this is increased exposure to the insurer which is likely to be passed on to policyholders in the form of higher premiums.
Thursday, 27 October 2011
ARAG celebrate their fifth anniversary in style
This year ARAG celebrate their fifth anniversary and all of the accompanying successes that have been achieved. To mark the occasion we held a celebratory evening for staff and guests at the magnificent Roman Baths in Bath.In 2006, with just a handful of employees, ARAG started trading in the UK. Fast-forward to today where our 50th employee has just started, our product portfolio has doubled and we are successfully running at a profitable level and you start to see why we felt the need to celebrate in style.
On Thursday 29 September, guests and staff enjoyed a champagne drinks reception around the famous Roman Baths, followed by a four-course dinner in the adjoining Pump Room. After dinner, ARAG’s Managing Director, Tony Buss and Head of Group International, Dr Johannes Kathan stood up to say a few words. We were also treated to a surprise rendition of Happy Birthday on the piano by Dr Kathan.
To close the evening, after-dinner speaker John Simonett entertained us by memorising details about everyone in the room and then went around surprising people with snippets and stories about their interests, work and achievements.
After carriages at midnight, most went back to the hotel to continue the fun at the hotel bar, it is safe to say that it was definitely an eventful evening!
Monday, 12 September 2011
A new addition to your wedding checklist, get divorce insurance
I find myself in a strange predicament at the moment as I am getting married next month, yet at work I am charged with marketing ARAG’s latest offering, divorce insurance. This is not something that I imagined adding to my ever growing checklist when I got engaged however it has definitely given me some food for thought!
Launched to the market on Monday 6 September, the two products – Pre-nuptial Legal Solutions and Divorce Legal Solutions – will be sold alongside nuptial agreements and provide the policyholder with a legal expenses insurance policy that starts from the date of a marriage or civil partnership. Both policies cover costs arising from a legal challenge to the nuptial agreement whilst Divorce Legal Solutions extends cover to include the cost of divorce proceedings.
The Government has perhaps unwittingly paved the way for the development of such products with its plans to restrict the provision of legal aid in most divorce cases. As pointed out in an article by the Daily Mail (November 2010) these changes, “mean anyone who wants to protect their share of the fallout from a broken marriage will have to pay for their own courtroom advice... The proposal raises the spectre of hundreds of thousands of husbands and wives taking out ‘before-the-event’ policies against the cost of divorce.”
Further to this the landmark case of £100m pound heiress Katrin Radmacher highlights the huge potential for an insurance policy that covers costs arising from a legal challenge to the nuptial agreement. In the case, Radmacher’s pre-nuptial agreement was upheld by the Supreme Court, reducing her ex-husband’s settlement from £5.8m to around £1m. Following this, the Law Commission is considering a statutory framework for pre-nuptial agreements.
It therefore seems likely that interest in divorce insurance will grow considerably in the coming years. This trend is backed by figures in the 2011 Matrimonial Survey by Grant Thornton where it shows that 58% of their respondents (family solicitors) reported that their level of pre-nuptial advisory work has increased [in comparison to 2010], and the Office for National Statistics Bulletin showing the number Civil Partnership dissolutions in the UK in 2010 increasing by 44%.
Add to this the precedence set in some European countries where there is already an established market for divorce insurance and the potential for development in the UK is clear to see.
Two law firms who draft relatively high numbers of nuptial agreements – Mishcon de Reya and Prolegal - have already made these products available to potential clients. The press coverage received so far, including a feature on Radio 4 show PM, has also on the whole been positive:
The Guardian: "Getting married? Top legal tips for couples-to-be…1. Have a prenuptial agreement.
The Economist: “With half of all marriages doomed to fail, even the moderately hard-headed may be interested in ways of mitigating the danger.”
Financial Times: “So, you’ve just got married, what do you do? A) Go on honeymoon, B) Celebrate with your family, or C) Take out divorce insurance.
If you answered C then, (somewhat surprisingly), you are not alone... while divorce insurance is unlikely to take off for the mass market any time soon, it could work for individuals who have already taken the time to craft a pre-or-post nuptial agreement.”
Financial News: “For the high net worth individual for whom a pre-nup just isn’t enough protection from the one they love, Mishcon de Reya is offering additional new armour for their clients’ personal fortunes: pre-nup insurance.”
Moneyhighstreet: “Savvy investment”
I will leave it to ARAG’s MD, Tony Buss to sum up, “While some may see the very idea of ‘divorce insurance’ as unromantic, the realities of modern life and the government’s legal aid and costs reforms will make it harder for ordinary people to access justice before the courts, meaning this is the right time to launch such a product.”
Find out more about the products: Pre-nuptial Legal Solutions Divorce Legal Solutions
Launched to the market on Monday 6 September, the two products – Pre-nuptial Legal Solutions and Divorce Legal Solutions – will be sold alongside nuptial agreements and provide the policyholder with a legal expenses insurance policy that starts from the date of a marriage or civil partnership. Both policies cover costs arising from a legal challenge to the nuptial agreement whilst Divorce Legal Solutions extends cover to include the cost of divorce proceedings.
The Government has perhaps unwittingly paved the way for the development of such products with its plans to restrict the provision of legal aid in most divorce cases. As pointed out in an article by the Daily Mail (November 2010) these changes, “mean anyone who wants to protect their share of the fallout from a broken marriage will have to pay for their own courtroom advice... The proposal raises the spectre of hundreds of thousands of husbands and wives taking out ‘before-the-event’ policies against the cost of divorce.”
Further to this the landmark case of £100m pound heiress Katrin Radmacher highlights the huge potential for an insurance policy that covers costs arising from a legal challenge to the nuptial agreement. In the case, Radmacher’s pre-nuptial agreement was upheld by the Supreme Court, reducing her ex-husband’s settlement from £5.8m to around £1m. Following this, the Law Commission is considering a statutory framework for pre-nuptial agreements.
It therefore seems likely that interest in divorce insurance will grow considerably in the coming years. This trend is backed by figures in the 2011 Matrimonial Survey by Grant Thornton where it shows that 58% of their respondents (family solicitors) reported that their level of pre-nuptial advisory work has increased [in comparison to 2010], and the Office for National Statistics Bulletin showing the number Civil Partnership dissolutions in the UK in 2010 increasing by 44%.
Add to this the precedence set in some European countries where there is already an established market for divorce insurance and the potential for development in the UK is clear to see.
Two law firms who draft relatively high numbers of nuptial agreements – Mishcon de Reya and Prolegal - have already made these products available to potential clients. The press coverage received so far, including a feature on Radio 4 show PM, has also on the whole been positive:
The Guardian: "Getting married? Top legal tips for couples-to-be…1. Have a prenuptial agreement.
The Economist: “With half of all marriages doomed to fail, even the moderately hard-headed may be interested in ways of mitigating the danger.”
Financial Times: “So, you’ve just got married, what do you do? A) Go on honeymoon, B) Celebrate with your family, or C) Take out divorce insurance.
If you answered C then, (somewhat surprisingly), you are not alone... while divorce insurance is unlikely to take off for the mass market any time soon, it could work for individuals who have already taken the time to craft a pre-or-post nuptial agreement.”
Financial News: “For the high net worth individual for whom a pre-nup just isn’t enough protection from the one they love, Mishcon de Reya is offering additional new armour for their clients’ personal fortunes: pre-nup insurance.”
Moneyhighstreet: “Savvy investment”
I will leave it to ARAG’s MD, Tony Buss to sum up, “While some may see the very idea of ‘divorce insurance’ as unromantic, the realities of modern life and the government’s legal aid and costs reforms will make it harder for ordinary people to access justice before the courts, meaning this is the right time to launch such a product.”
Find out more about the products: Pre-nuptial Legal Solutions Divorce Legal Solutions
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