Advocacy & Safety - Compensation payout.

Last week a compensation award of huge proportion,which incidently made headlines in News media across the country.

The award made by the courts was granted to a cyclist who was seriously injured in an inccident when he was struck by a vehicle at a road junction in Hexham, Northumberland.

The record payout consisted of a £1.7 million single payment + two hundred thousand pounds per year for as long as he lives.
This would amount to £5 million assuming he lives his natural three score and ten life expectancy,as he is at present 35 years of age.

This item is of special interest to me,as it occured in my local market town.

After legal ranglings over a long period of time the drivers insurers addmited total liability for the inccident.

The cyclist, a Mr Harrison, was so badly injured,he spent 3 years in hospital, most of this in a "Coma" + plus multiple breaks to all his limbs.

My own personal feelings Knowing the surroundings of the event, are a big thank you to the judge for granting this huge award. At the very least I am hopefull that motorists knowing the going rate for such scant regard and safety for fellow road users will treat them with a little more respect in future.

Do you have a link to some news stories on the incident? I'm curious about the circumstances of this accident and why the judge thought it was worth about $30,000,000 (is that about right?).

I don't think that's right- 5 million pounds is not thirty million USD, no matter how bad our dollar is sliding in the world markets!

Is it more like 7.5 million USD?

Yeah, a link would be nice. How is the guy faring now? He's at home? Walking? Working?

Good for him!

Koffee

I'm just curious as to how they plan to get that sort of money out of someone. As much as I agree with the award - I'm just wondering how many of the general population could actually afford 200,000 pounds a year. Would the government pick up the tab on this one?

Oh yeah, I believe the total award amounts to around 8 or 9 million US dollars at a very rough estimate.

Sounds like it will be the insurers who'll foot the bill on this one, Chris.

I'd love to see a link on this one too. Did a quick google but didn't find it. Some idea of what his long term injuries would help to better understand the ruling.

Like everyone else I have searched all the media for information on this one, but come up with nothing.

Quite frankly the whole incident has been shrouded in a veil of mystery and secrecy ever since the accident,if thats what it was.

Rumours were rife at the time, as to the disclosure of the person driving the vehicle. the names suggested I would prefer not to print (walls have ears and all that sort of thing).

I don"t even know if charges were brought against the driver.

If the story regarding the incident were correct then they should have been implemented.

Mr Harrison has made an exellent partial recovery from many of his injury"s.
Even to the extent that with assistance he is able to have sessions in the pool.
and go out with a couple of his friends for a pint.in the evenings.

With the money. a specially adapted house will be built for his needs and the constant care he will possibly always need can be afforded.

Perhaps the local newspaper ("The Hexham Courant") will carry a bit more information when it is produced on Friday, I shall watch for the information regarding the case and post the link if it contains anything usefull.

Sorry I am a week behind with my local newspaper publishing date.

The item is covered now at www.hexhamcourant.co.uk
but there is little more information than I have already posted. Apart from the usual variances in award amounts and timings etc.

Thanks for the update. Just curious- what if the guy lives to be 80 or something? Have they capped his insurance payouts by estimating his life expectancy or something?

Koffee

Thanks for the update. Just curious- what if the guy lives to be 80 or something? Have they capped his insurance payouts by estimating his life expectancy or something?

The longer he lives the better as far as I'm concerned. If they haven't capped the insurance payments - even better.

Total agreement- I hope he lives to the ripe old age of 110 personally. But I would have to think that because they estimated out the total award, they must have also capped it at some point, which would suck if he does live to be an old, old man. Plus, I don't know if they took into consideration inflation or anything like that. You have to say, in the 1970s and 1980s, a million dollars meant you were rich and were going to live a good, rich life. Now, a million dollars means you come out ahead for a little bit, but you better keep your day job for now...

Koffee

[QUOTE=booyah]Sounds like it will be the insurers who'll foot the bill on this one, Chris.
QUOTE]

Hahaha. That's funny.

I assume you actually mean that 'everyone who holds a policy with the insurer will foot the bill'?

You're right Allister, even though it may be a deserving award, we all pay in the end, with our premiums, and the person who caused it might pay extra premiums for a few years.

The insurance companies won't lose anything, and if they do will get it back by boosting everyones premiums, as we've seen in the wake of 9/11.

[QUOTE=booyah]Sounds like it will be the insurers who'll foot the bill on this one, Chris.
QUOTE]

Hahaha. That's funny.

I assume you actually mean that 'everyone who holds a policy with the insurer will foot the bill'?

True, but what are the driver's chances of ever getting a cheap policy again? Even relative to what others are paying.

Unfortunate thing is that for this size of payment in this country (bear in mind we do not have punitive damages) the claimant must be fairly seriously injured (presumably brain injury) and have long term sequelae to the injury. Part of the damages will be to be to adapt housing etc and presumably to compensate for loss of earnings/cost of care.

Also to compensate for the loss of enjoyment of life.

It's a big payout but probably in no way compensates for the damage suffered in real terms.

The driver will no doubt still get back on the road.

True, but what are the driver's chances of ever getting a cheap policy again? Even relative to what others are paying.

Indeed. However, considering that he accepted all responsibility for the crash, I dare say he's upset over the crash as well, and will carry that burden for the rest of his life. Accepting responsibility like that is a Big Thing these days, and I say he should be applauded.

I would like to add that in cases such as this which, from what I've read in this thread, a high payout is justified, and if that means higher premiums for Me, so be it. I do wish that insurance companies were actually as altruistic as their advertising copy would have you believe though. It is, after all, gambling, and it is right and proper that occasionally, the house loses.

If insurance companies weren't so freakin' greedy, they wouldn't be raising premiums on the rest of us. I mean, we all pay insurance every year, and they've been taking money away from us for years and years, and millions of people have absolutely nothing happen to them. They've already made millions and millions of dollars off us because we pay for what may happen. Then when nothing happens, what happens with all the money we paid? You'd think they would have put that money away in a manner where the money will collect interest and be ready for payouts like this, but instead, they spend the money and pay their CEO's and other officers big time and waste the money on God knows what else they're spending it on (lear jets, yachts, etc.).

Koffee

I assume you actually mean that 'everyone who holds a policy with the insurer will foot the bill'?


I have been told that insurance premiums generally are influenced more by prevailing interest rates than by payouts. This is because for an insurance company, profitablity depends on investments more so than avoidance of payouts. I would guess that insurance mega-events (like say hurricane Andrew here in the US) would be exceptions.

Dan