The ABI has set up a code of practice on tracing liability policies with the aim of helping workers ...
The ABI has set up a code of practice on tracing liability policies with the aim of helping workers find their former employer's insurers.
The code was developed amid mounting concern that employees were struggling to pursue claims for compensation against companies for which they had worked due largely to a lack of insurance information.
Under the Employers' Liability (EL) Code insurers will have to:
l Save current EL policy information and make the extent and format of their EL records, including details of how they can be searched, available to the public.
l Keep all future EL records for at least 60 years.
l Appoint a designated contact to handle EL enquiries.
l Meet clearly laid out time scales when responding to enquiries.
l Make an annual statement of code compliance.
Tony Baker, ABI deputy director general, said: "In the past, some potential claimants have been held back from seeking compensation through no fault of their own. Although the number of people affected is small, it is wrong that they cannot be compensated where a liability exists in law.
"This new code should go some way to help make ensure that no longer happens."
But Brian Rawle, marketing manager at Guardian Employee Benefits, was critical of the 60-year time scale and warned that the code could lead to an increase in claims.
He said: "What sort of recollection will companies have over that time frame? What will most help individuals to pursue claims successfully is an improvement in education. This should be the ultimate message.
"Nevertheless, I believe it will be the courts that will be the ultimate arbiter in these cases."
The code, which has Government backing, was drawn up by the ABI and the Non Marine Association of Lloyd's (NMA).
Its commitments will be subject to an independent review, which will be chaired by ministers from the Department of the Environment, Transport and the Regions. Individual insurers' performance and adherence will also be kept under review.
