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Insurance Business | 04 Mar 2016, 10:29 AM Agree 0
The decision by one state government to create a taskforce to crack down on fraud in a key sector of the insurance industry has been welcomed by major insurers
  • Tony De Conno | 04 Mar 2016, 11:50 AM Agree 0
    I have been in the Insurance Industry for the passed 50yrs. In the 70's & 80's I was claims manager of a National Company and handled CTP PL and Workers Comp claims.
    My recommendation at the time and still is today is that lump sum payments should cease.
    The injured party did not loose a "bag of money"
    The injured party requires help - be it medical, loss of wages, adjustment for wheel chairs etc. and a monthly amount for inconvenience.
    Avoid the huge lump sums. A survey in the 70's proved that most of the claimants that received a lump sum were virtually destitute within 2 years - lost the lot. (Most cannot manage the windfall) Same would apply for Public Liability and workers comp claims.
    My opinion.
  • Tony De Conno | 04 Mar 2016, 12:14 PM Agree 0
    There is no doubt in my mind that lump sum attracts fraudulent and exaggerated claims
  • Tim Avernitis | 05 Mar 2016, 11:44 AM Agree 0
    Hi Jo

    Can you point me to this 70s survey?

    It is not true that lump sums almost always run out. Most of the costly claims require a trustee such as children claims and Brian injuries - therefore the money is managed. Plus, I'd rather take a lump sum and have independence rather than deal with a Government or private insurer for the rest of my life. Imagine having to put your hand out every time you wanted a physio appointment!

  • Fernando Casanova | 06 Mar 2016, 06:12 PM Agree 0
    I agree. Remove the Lump Sum payments. Pay for Medical , Income loss and mobility products and assistance and legal aid should be capped.
    Most of Insurance claims are driven by the legal system and practitioners
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