Out and about with Sales

At the end of October, we were delighted to pay a visit to our friends Cornish Mutual at their office in Truro. Our Chief Executive Tony Buss and Product Development Manager, Lesley Attu joined our sales team, Head of Sales Andy Talbot and me on the trip down the M5.

ARAG started dealing with Cornish Mutual at the beginning of 2013 and since then things have rapidly developed so that we now supply all of Cornish Mutual’s ancillary product requirements. We believe the reason for this success is a shared philosophy of excellent customer service and a collaborative spirit which has enabled products to be developed and delivered on time. This trip was an excellent opportunity to increase our understanding of the customers’ requirements.

We met at Cornish Mutual’s purpose-built offices and their Managing Director Alan Goddard showed us round and introduced us to some of the team. After this we set off to meet one of Cornish Mutual’s Members a farmer call John Sawle, Cornish Mutual’s local Insurance Inspector Jeff Kincaid kindly showed us round, Jeff has worked for Cornish Mutual for 40 years and John’s farm has been insured with Cornish Mutual for 100 years. This says a lot about the long term approach that the company has to its relationships with Members.

The tour of John’s farm exceeded all expectations. It was a joy to listen to a man at the top of his profession. We were shown round three farm locations and learned about the cereals and use of the land. We were also shown the livestock and were advised of the challenges in keeping them.

We also went to the maintenance shed where we saw the world’s only working steam tractor.

I think we all came away much wiser.

We then adjourned for lunch at the well-known Castaways restaurant in Mylor and returned home after a very enjoyable trip. Thanks to Claire Longman for organising the day and also to Mitch Portman and Paul Mahon for their company.

John Gray

Corporate Account Manager

Legal Ombudsman to hear CMC complaints

The MoJ has considered responses to its May 2014 consultation document “The Legal Ombudsman and complaints about claims management companies”.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/369748/legal-ombudsman-and-complaints-about-cmcs-response.pdf

From 28^th January 2015 the Legal Ombudsman will offer consumers a free route of redress if they have a complaint about a regulated claims management company (CMC). The fee structure has been designed to make the scheme wholly self –financing and is based on the turnover figure of the CMCs.  Annual charges are shown below however pro-rata charges will apply for the initial period until 1 April. 

Where the annual turnover of an authorised CMC is £163,636 or less, then the amount payable will be a fixed fee of: Turnover band £	Annual Fee
Up to £24,999.99	From £75 - £250
£25,000 – £74,999.99	£340
£75,000 – £163,636	£540

Where the annual turnover of an authorised CMC exceeds £163,636 businesses shall pay an amount equal to 0.33% of annual turnover up to £1 million, plus 0.22% of annual turnover between

£1 million and £5 million, plus 0.18% of annual turnover above £5 million.

Fees are capped at £40,000.

The MoJ estimates that the Legal Ombudsman scheme will consider 3,000 complaints from consumers a year. The Claims Standards regulator will continue to deal with complaints about unregulated businesses and to investigate misconduct.

Lesley Attu

Product Development Manager

All the leaves are brown and the sky is grey

Hearty casseroles and soups, the rugby season and chatting in the office about the Christmas party; it must be autumn. At this time of year we all crave the last glimpses of light and finer weather before the clocks fall back an hour, signifying the end of British Summer time. As the nights draw in you want your home to be warm and cosy, somewhere to hide away from the worst of the winter weather.

If your boiler won’t work or a freeze causes a burst pipe it can make things really uncomfortable.

Many people in the UK don’t know about Home Emergency Insurance or think that their home insurance covers it. Here at ARAG, we need your help and expertise to spread the word about how our Defaqto 5 star standard product plugs the gap.

This is a typical example of the way our cover helps customers.  During a particularly cold snap last winter, on a Saturday morning, our insured’s boiler broke down. The lady had three young children, so they were naturally keen to resolve the problem as soon as possible. The insured contacted us and we immediately appointed a contractor who attended the same day. A replacement part was needed but thankfully this was available locally so was fitted immediately so the family was able to enjoy the benefits of a cosy home.

Help is available when needed most. Our service operates 24 hours a day, 365 days a year and for additional peace of mind all our permanent repairs are guaranteed for 12 months. An emergency is a stressful situation and people expect things to be rectified fast. That is why we have chosen our partners very carefully and constantly monitor performance to maintain great standards.

So as we prepare for a busy period of emergency calls, now is the best time to advise that our Home Emergency Insurance cover will help keep your customer’s home safe and comfortable to live in.

Glynis Moss

Marketing Executive  

The importance of BTE insurance as a funding option

I first worked with Rocco Pirozollo general editor of the Law Society Litigation Funding Hand Book when we both sat on the ABI’s Legal Expenses Insurance committee many years ago and more recently when I chaired an ABI-sponsored but independent working group which reported on consumer aspects of BTE. I was flattered to be approached by Rocco towards the end of 2012 to write a chapter of “the handbook”.

Rocco’s vision was to provide comprehensive practical help to busy litigators following the Jackson reforms. He has written three chapters of the book himself while inviting others to contribute the different chapters according to their fields of expertise. The project moved slowly for a time as reforms were rolled out and new cost rules published but earlier this year it was full steam ahead and it was great to see the book published in September.

The panel litigator system that legal expenses providers operate is disliked by many law firms so it may not be surprising that the BTE chapter is tucked away at the back of the book.  However, legal expenses policies provide welcome financial support to consumers and businesses. At ARAG we aim to be fair to our customers and to their preferred law firm when freedom of choice of lawyer applies.  My hope is that by being fully informed of pros and cons of many possible funding options litigators will feel more comfortable about recommending BTE as a preferred method of litigation funding.

Lesley Attu Product Development Manager

http://www.litigationfutures.com/blog/a-handy-handbook

ARAG enhances winning formula for Landlords

New and existing private sector landlords can expect much more from their revised ARAG legal protection policy without ever making a claim. Landlords Legal Solutions has been completely re-written and now includes more free legal documents from its digital documents service as well as higher benefits and fewer restrictions or excesses.

Our landlords' policy was already the complete package and you don't spoil a winning formula but you do make important improvements around the edges. Key to this approach is the use of even clearer language, generous uplifts in benefits and the removal of excesses or other complications.

We want policyholders to know exactly what they are getting cover for and to make use of the free added-value services such as helplines and document services. Experience tells us that these additional services are highly valued, giving significant peace-of-mind to landlords, and helping agents retain business even when no claim has been made.

Substantial increases have been made to benefits. Alternative accommodation for landlords when vacant possession is impossible now stands at up to £175 per day, maximum £5250, with storage refunds up to a maximum of £300 also being covered.

Standard cover includes: repossession; property damage, nuisance and trespass (now without any excess); recovery of rent arrears; accommodation and storage costs; prosecution defence; plus the landlords' legal service website online law guide, monthly newsletter, tax and 24-hour legal helplines. Legal documents available free to landlords now include the licence agreement to rent a room, plus the most commonly needed customisable texts such as the initial letter concerning rent arrears, the demand for rent from tenants, plus section 8 and 21 notices(notice to quit, notice of repossession).

Three optional extensions remove worries over non-payment of rent, disputes over contracts or the tax affairs of the policyholder. Rental indemnities are offered with a choice of compensation for 5 of the first six months in arrears or 11 out of 12 months on a yearly option. Contracts for such work as construction, or designing, converting or extending any building, are covered up to £6000 including VAT. The cost of defending investigations into landlords' tax affairs by HMRC can also be added to the cover.

David Haynes

Head of Underwriting & Marketing