Justice for motorists Contact us Issue 2 Tracking the industry Thompsons Solicitors has been standing up for the injured and mistreated since Harry Thompson founded the firm in 1921. The firm has fought for millions of people, won countless landmark cases and secured key legal reforms.

Thompsons has more experience of winning personal injury and employment claims than any other firm – and uses that experience solely for the injured and mistreated. Thompsons refuses to represent insurance companies and employers, invests specialist expertise in each and every case and fights for the maximum compensation in the shortest possible time. Visit us at www.thompsons.law.co.uk Call us on 0800 0 224 224 We say: @ThompsonsLaw Car insurers should cut premiums now – or face a windfall tax on their profits This broken market should be reformed to protect consumers and stop profiteering The Thompsons Tracker is all about standing up for Victim of road traffic accident Accident victims should be free to choose their own lawyer without consumers and injured people and sets out to insurers trying to influence their decision or make money from their expose insurance industry double standards and choice. false claims. Tmhe insuraance dindusetry’s c amtpaigon feel like “aWe h avce wrritteni tom Eldon poisinng a acoml panies are based in the Isle of Head of policy at Thompsons Solicitors, Tom Jones, Download this issue at to stigmatise people who claim for whole series of questions but have Man and controlled by Mr Banks. explains more about the lucrative car insurance industry T 16:34 Page 7 compensation has now descended so far received only what appears www.thompsons.law.co.uk/tracker/2 As well as claims handling services, and Britain’s so called ‘compensation culture’ in this brief into making intimidating to be another standard letter in Eldon sells insurance to motorists three-minute video clip. statements about fraud to people reply.” who have genuinely suffered road under three brands: GoSkippy for accidents. Mr Lehane’s claim is for injuries the private car market, Footprint for suffered in a road accident in van and motorbike insurance and Thompsons Solicitors made a claim Notting Hill, London, in 2012 and Business Choice Direct for following a road traffic accident on Eldon have already paid for the commercial vehicles. behalf of Jerry Lehane to Eldon vehicle damage. Banks and his companies are big Insurance Services (the insurers for “The letter made me feel like a UKIP supporters. Last year, Banks the other driver). Rather than criminal,” Mr Lehane said. “My personally gave them £100,000 while respond to Thompsons direct, Eldon lawyers had contacted Eldon yet Rock Services Ltd, a subsidiary of sent a three-page letter to Mr they by-passed them and came Rock Holdings, donated £394,254. Lehane’s home address warning – Thompsons’ client Jerry Lehane straight to me. When I read the £1.66 without providing any evidence that “The Banks business empire letter, I knew it wasn’t something I BILLION it was of any relevance to him – and, if they had suspicions about operates mainly from what are could deal with by myself. DIVIDEND that fraud “can be punishable by a fraud, they should have put that to commonly considered to be tax prison sentence and could also us as his lawyers. “I had Thompsons there to support havens, which we know (in our view prevent you obtaining insurance me but other people might not sadly) is neither unlawful nor “It would be bad enough if this was cover in the future”. know what to do and could feel as unusual,” said Judith Gledhill. “But an isolated case, but the letter DIRECT LINE AND ADMIRAL if someone was trying to catch when a company that is ultimately The letter also said his data will be appears to be standard because in them out. The wording was run from outside the UK sends passed to the Government, fraud one place the person processing it HAVE PAID OUT £1.66 BILLION IN SHAREHOLDER threatening.” what looks like an intimidating letter detection bodies and other insurers, has left the words ‘name of solicitor’ to our client who has done nothing and queries whether or not he had in brackets. Eldon Insurance Services Ltd is a DIVIDENDS IN THE LAST THREE YEARS wrong, we see it as one more instructed Thompsons and how he UK-based company but it is part of “Eldon boast on their website that reason for transparency in the came to do so. an -centred group of – THAT’S £221 FOR EVERY POLICYHOLDER they are ‘the claims experts’ who captive British car insurance market companies controlled by insurance “The letter to Mr Lehane is worded ‘minimise the cost of claims’ to the – so that motorists know who they multi-millionaire . in an intimidating fashion,” said Judith insurance industry. It appears one of are dealing with and how they Gledhill, head of personal injury at their tactics may be to try to frighten Eldon was owned by Rock Holdings behave.” #CutPremiumsNow Thompsons. “It asked questions they people by suggesting what they are Group until July 2013 when it was should have known the answer to doing is somehow underhand. sold to ICS Risk Solutions, but both

Government Dividend bonanza New insurance Inside this issue www.thompsons.law.co.uk climb-down on claims for insurers fraud taskforce Government and insurance The tangled web woven around industry climb-down on Dividend bonanza for Admiral and Direct Line insurance fraud claims Eldon and the Go Skippy brand The Government and the insurance shareholders highlights myth of fraud crisis industry have retreated from their UK-registered Eldon had a turnover claims about the level of motor Britain’s two leading car insurers The final dividend takes Direct Legal Aid, Sentencing and to it have been exaggerated to get in 2013 of £12.8m but 90% of this – insurance fraud in a response to a have announced yet more bumper Line’s total pay-out to shareholders Punishment of Offenders Act. reforms that help insurers make £11.4m – was paid over in a ‘related House of Commons Transport pay-outs to shareholders after for 2014 to 27.2p – 32% more Admiral, meanwhile, delivered a ever-larger profits and to make party’ transaction to Rock Services Select Committee report. continuing their profits bonanza in than the 20.6p paid for 2013. profit from the UK car insurance motorists think that premiums have which is a wholly owned subsidiary 2014. The Government had parroted market of £398m and announced to stay high. of Rock Holdings. In total cash terms, Direct Line figures released from industry body, Annual results released by Direct shareholders will get £407m, a 49p final dividend worth £135m “Direct Line and Admiral deserve The 2013 accounts of Rock Services, the Association of British Insurers Line and Admiral, which between allowing chief executive Paul to shareholders. The company said some credit for operating publicly which is also UK registered, show this (ABI), which stated that there were them write one in four motor Geddes to boast: “I am delighted to this brings the total pay-out to payment as part of a much larger as many as 59,900 ‘dishonest’ motor insurance policies in the UK, show report we have met or exceeded shareholders in the ten years since so that those who want to read £42.75m turnover but from which it claims in 2013 with a value of both recording big profits last year all (the targets set in 2012). After Admiral went public to £1.75 the small print in their accounts can appears Rock Services made a profit £811million. The ABI had also claimed – despite the insurance industry’s paying the regular and special billion. discover the truth. of only £30,000 and paid a mere that fraud adds on average an extra claim to be a victim of fraud dividends for 2014, we will also Tom Jones, head of policy at £2,000 in corporation tax. £50 to every household’s annual “That’s not the case with Aviva and costing anythin g b etween £ 8 11m have returne d a tot al of £836 insurance bill. Thompsons Solicitors, said the AXA, both of whom still refuse to A clue as to why this might be the and £2bn. million to shareholders since we figures were yet more evidence publish separate trading figures for case is given in the company’s The all-party committee challenged beg a n life as a p u bli c company.” that the scare stories about the Direct Line, which was spun out of the captive UK car insurance ‘strategic report’, which says Rock the validity of the ABI statistics, and taxpayer owned RBS in 2012, plans The results statement said Direct scale and cost of fraud put out by Services is ‘a recharge company’ for called on the government to ensure insurers were misleading. market. to pay an 8.8p per share final Line’s profits had been boosted by Rock Holdings, which is subject to the data being used to support key dividend after seeing its operating ‘favourable experience on bodily “The endless claims of fraud, from “This is a compulsory purchase and the Isle of Man’s zero corporation policy decisions that favoured Eldon Insurance Services and the Southern Rock Insurance being profit for the year rise 14% to injury claims across recent accident whiplash to ‘cash for crash’, and the reform is urgently needed to make tax rate. insurers at the expense of injured web of companies they are based overseas isn’t unlawful but it claimants were based on solid £497m. years’ as well as the Government’s huge £ multimillion sums attributed the market transparent.” connected with straddle at least is financially attractive – in , Despite its paltry profits in 2013, foundations. three legal jurisdictions, and we tax on profit is only 10% rather than Rock Services was by the final found that understanding who the 21% currently levied in the UK. quarter of 2014 able to find In their responses to the committee’s + 168% owns what is not easy. £394,254 for a donation to UKIP. report, the Government and ABI Southern Rock Insurance and Eldon have since back-tracked from their Their main public face in the car are connected to each other original unqualified assertions about DIRECT LINE insurance market is the Go Skippy through the Go Skippy brand and the level of fraud in the industry. DIVIDEND 2012 = £152m 2013 = £309m 2014 = £408m brand, which describes itself as a their sale of various services to e “fresh, independent insurance broker” each other but both companies are Having previously categorically stated that “searches available insurers – also part of a business empire nancial dails the data was ‘proof’ of fraud they including our own in-house company driven from another tax haven, the have both now admitted their figures + 12% – to find you the best deal to suit Isle of Man, by Arron Banks, the  this empire do not provide “anything more than your needs and pocket”. multi-millionaire UKIP donor. an indication” of the level of fraud. ADMIRAL Go Skippy’s website gives its head According to Experian reports, the were, we found, The ABI said it even included cases DIVIDEND 2012 = £244m 2013 = £273m 2014 = £271m office address as Lysander House in shareholders in Southern Rock where a ‘handler’ who suspected Catbrain Lane, Bristol. This is also Insurance are Banks, Rock Holdings difficult to fraud had asked for further the registered office of Eldon and Southern Rock Holdings (and information and the claimant had Insurance Services and another Southern Rock Holdings is 100% “discern. Credit either failed to provide it, withdrawn company called Rock Services. owned by Rock Holdings). their claim or accepted a reduced Thompsons calls for reforms to protect motorists

agency reports settlement. In its letter to Thompsons client Meanwhile, Eldon’s accounts for the Thompsons has condemned the fact, these are actually the premiums insurance, but AXA and AVIVA have No independent evidence Jerry Lehane, Eldon said it was year to 31 December 2013 say it say Southern government’s new ‘fraud taskforce’ acting on behalf of Southern Rock was owned by Rock Holdings until they collect from motorists in a refused to publish them and others, has ever been produced to show

as yet another insurer-dominated captive market and the profits often such as Southern Rock, are based in

Insurance Company Ltd. Southern July 2013 when it was sold to a vehicle for boosting profits at the the scale  aud, all the Rock is based in Gibraltar and acts company called ICS Rick Solutions. Rock Insurance go abroad. low-tax jurisdictions with minimal expense of motorists and is calling reporting requirements. gur come om the industry as an underwriter to Go Skippy. “

Auditors BDO have said, however, wre premiums for real reform to make the industry Thompsons, meanwhile, is campaigning itself and y on the back  Last year, the Insurance Fraud Bureau that this did not result in any more transparent. for reform of the car insurance market “Transparency is the key to consumer those self-serving statistics protection,” said Tom Jones. (IFB) announced that Southern Rock change in overall control because… worth £74.8 in to ensure greater transparency and to “ The taskforce states its objective as protect consumers. there has already been radical Insurance, which it described as “the both ICS and Rock Holdings (which “We believe that one regulator, the rtriions on acc to justice largest personal lines motor insurer are both registered in the Isle of being ‘to be able to send out a “ Financial Conduct Authority should be 2013, ile message that the UK has a thriving The car insurers are, in theory, not already working with IFB”, had Man) are controlled by Banks. given lead responsibility for the car for injured people under the insurance industry’ and hardly accountable to seven regulators but joined the industry’s “collective fight insurance market and have the powers Tory Lib Dem government and The financial details of this empire Southern Rock surprisingly its interim report accepts not one of them has been willing or against fraud”. and resources to be able to properly more will almost certainly be were, we found, difficult to discern. without question the insurance able to compel them to declare how protect consumers and demand It said: “Having Southern Rock on Credit agency reports say Southern Holdings has industry’s various and varied claims much revenue and profit they make rommended by this taskforce. transparency. At present it’s a one-way board enhances both the Rock Insurance wrote premiums about fraud. from this compulsory purchase. Policy is being made based on information at our fingertips and worth £ 74.8 m in 2013, while tal s street with insurers making demands Direct Line and Admiral do provide scare stori n facts – that’s the scale of our collaborative Southern Rock Holdings has total It argues car insurers contribute £25 of policy-makers and little or no real separate trading figures for car y we need transparency. efforts to combat fraud”. assets of £ 25.1 m.  £25.1 . billion to the UK economy when, in accountability.