Ethics Newsline®

From Norwich Union:

“An overwhelming 96 percent of people in Britain believe we are more likely to seek damages today than we were a decade ago a new report reveals.

“Independent research commissioned by Norwich Union looked at whether the public believe there is a compensation culture and what people really think about claiming compensation.

“While three-quarters of Brits are worried about the impact of an increasing ‘blame and claim’ culture, nearly half say they are themselves more likely to claim compensation.

“In fact more than one in five people (21 percent) believe they should claim for compensation whenever they can.

“The report is the first in-depth look at whether and why the ‘blame and claim’ culture has taken hold in the past ten years. One of the key factors is that the British sense of collective responsibility has given way to an individualistic approach to life where, as one respondent said ‘you are what you have.’

“According to David Hooker, director of claims at Norwich Union, the research clearly points to a cultural shift: ‘The research reveals a disparity in what people think about the compensation system, and how they act. Whilst it is excellent that over the years we have increased access to justice we have to exercise those rights with responsibility, acknowledging the consequences of our actions.

“‘What’s more worrying is that successively younger generations express less concern about the impact of a ‘blame and claim’ culture, and this shift, if left unchecked, could mean the nation’s compensation bill continuing to rise….

“On making the compensation system fairer and more efficient the public say:

• “Prosecute people who make false claims (38 per cent)…
• “Government should put a limit on claim entitlements (21 per cent)
• “Compensation lawyers should get half of what they currently do and receive a fixed fee, rather than a percentage of costs awarded (66 per cent)….

“…Every year $18.4 billion in compensation claims is paid out according to the Institute of Actuaries (December 2002) — this costs $920 per household. Bogus or excessive claims cost local authorities as much as 117 million a year, according to the Commission for Architecture and the Built Environment.

“There has been a 48 percent increase in the number of claims being handled by the NHSLA (National Health Service Litigation Authority)….

“Mr Hooker said: ‘This issue needs urgent engagement from government, individuals and business. We need to exercise our rights in a more socially responsible way so that those that are entitled to compensation receive it swiftly and at a fair level. If we don’t do something now, the public will have to foot an ever increasing bill, and our public services will suffer irrevocable harm.’”