We are always shocked to hear when a driver has a horrible industry at work. Unfortunately stories such as these are common. Sadly news frequently reports catastrophic accidents caused by commercial vehicle drivers. Although this type of accident has irreparable damage, we do expect the victim to receive compensation. Whether life altering or fatal, accidents on the roads are a sad certainty; but certainly if we were the victim, we would want our loved ones suffering to be minimalized by payment of appropriate compensation.
What are the Ogden tables
Published by the UK government, the Ogden Tables enable appropriate calculation of compensation for a victim. These are used in cases in the UK of both personal injury and death.
Why are the Ogden Tables important now?
There has been a recent way in which the Ogden tables are calculated. The key change is that the victim is now seen as a risk adverse investor. As such, accounting for the lower rate of interest they will receive when investing a lump sum, a higher initial payout is necessary. Elizabeth Truss made it clear she believe the tables now have right rate to compensate claimants.
Although we want to expect an appropriate pay-out in the case of an accident, this change has caused the insurance industry turmoil. Underwriters are being forced to look at how they will cover these increasing pay-outs. It resulted in dropping share prices, and statements from a number of insurers, and their trade organisation, to highlight their unease with this increase.
How will this affect Truck Fleet Insurance?
Unfortunately a disproportionate number of accidents on the roads are the responsibility of commercial vehicles. According to the Campaign for better transport HGV fleets are involved in 52% of motorway fatalities. Despite HGVs comprising only 10% of the traffic on the roads.
As a large claim, for example as the result of a fatality, is statistically more likely for HGVs, this cost to the insurer will likely be subsumed into the insurance premiums that truck fleet operators pay. As insurance underwriters comprehend the impact the change in the Ogden tables has, this will be included in their risk calculations.
Is this likely to change the cost of my other motor insurance policies ?
It has been reported that the change in the Ogden rates will have an impact on the cost of commercial fleet insurance paid by businesses, as well as personal premiums. But it has also been highlighted that insurance premiums remain competitive in the UK. As businesses and individuals take the time to seek the correct coverage. Motor trade insurance policy holders for example benefit from specialist brokers who negotiate the best deal to abate the increase in premiums. There are increasing ways to compare insurance products in niche sectors such as the motor trade.
With increasingly congested roads it is more important than ever before that drivers stay vigilant, whether driving for themselves or for work. But unfortunately accidents happen, and for HGV fleet operators a suitable insurance product is a good investment, in the case of claim. Even in the scenario of no claim being made, the added value of peace of mind is important. With the right insurance, the numbers on the Ogden Tables do not constitute a risk, as even with the higher level payouts, with the correct insurance policy a business will be covered.