> All the big AIM fraud exposés
> 300 articles and podcasts a month
> Hot share tips
> Original investigations by our experienced team
> No ads, no click-bait, no auto-play videos
By Tom Winnifrith | Monday 22 September 2014
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The Bulletin Board Morons do not seem to understand that if an Industrial Deafness case is lost Quindell (QPP) earns nothing it just incurs cost. So the mushrooming of bogus claims will not generate any cash for Quenron although it is happily accruing income on the basis that it takes on and wins 6,000 cases a month. Given that the number of claims settles has not risen above 20,000 across the while UK for many years, it is inevitable that at some stage it will have to write back all or nearly all of its accrued income from ID, prompting a profits warning. It will also mean that Quindell runs out of cash. The only question is when?
As such as a reminder of what is going on I bring you an article from The Times out today flagging up statements made by Insurance giant RSA. It reads:
Claims for industrial deafness have surged in the past five years amid fears that it has become a new hunting ground for claims management firms and personal injury lawyers.
Days after the Association of British Insurers warned that industrial deafness had become a new “cash cow” for the legal profession, leading insurers have published figures that deepen such concerns. RSA, operator of the More Than brand, said that it had received more than 800 new claims for industrial deafness every month last year, almost double the 450 a month coming in two years previously. The company, which believes that the system is being exploited, said that it rejected about 70% of all of the claims that came in. “Deafness is a major issue for the insurance industry,” a spokeswoman said. “It is certainly true that we have seen an increase in industrial deafness claims over recent years.
We agree with the ABI that this is an area that claims farmers and fraudsters are actively targeting and it requires reform. We are doing all we can to combat this fraud, but believe that the government should be doing more.”
Aviva said that its deafness claims had risen from 2,400 in 2009 to 11,467 last year. At Axa, more than half of the insurer’s claims on employers’ liability insurance last year related to industrial deafness and claims volumes for the condition were double that of the previous year. David Williams, managing director at Axa Insurance, said: “In the same way as whiplash-related injuries, the lack of a clear diagnostic framework has meant that deafness in the workplace can be used as the basis of exaggerated or fraudulent claims. “We very rarely receive claims directly from individuals — the overwhelming majority come from solicitors — and it appears that a high proportion are speculative; 75% of claims are not pursued once we have requested evidence of the injury or the claim is challenged.”
Central to the problem, according to insurers, are the high fees on offer to lawyers. Only last week, the ABI said that the average legal fee for a claimant lawyer for settling an industrial deafness claim last year was £10,500, compared with only £500 for a low-level whiplash claim. It also compared with the average compensation paid out to a sufferer of industrial deafness of £3,100, the ABI claimed.
In response, lawyers say that cases can be complex and claimants have to be allowed access to a proper civil justice system. John Spencer, president of the Association of Personal Injury Lawyers, said: “Deafness is a serious problem with an impact on people’s social, family and working lives. Those who succeed in making a claim do so because negligence is proven. “The onset of deafness can happen years after exposure to the noise which caused the harm, so identifying the employer responsible is not always straightforward. For solicitors these cases can be difficult, particularly when the responsible employer persists in denying liability.”
Shares in Quenron are a sell with a target price of 1p.
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Search ShareProphets |
Stock market news |
Recent Comments |
Site by Everywhen