ABI/Cila claims code recommends five-day claims settlement

Loss adjusters must adhere to the FSA guidelines of settling claims within five days under the new claims code.

The final draft of the ABI/Cila claims code for loss adjusters will be circulated to members imminently.

The claims code provides loss adjusters with guidelines for dealing with a range of issues including: training and competence; claims handling; file management; complaints; business continuity; surge plans (dealing with large amounts of claims) and non-compliance.

Norwich Union director of claims public affairs David Hooker, who chairs the Cila/ABI claims code working party, outlined some of the key elements of the code. They include:

  • When dealing with retail customers, adjusters "must act so as to enable insurers to handle claims fairly and promptly (within five working days)".
  • Adjusters must act to enable insurers to settle a claim promptly (recommended to be five working days) once settlement terms have been agreed.
  • Adjusters must explain to commercial customers how to make a complaint.
  • Reportable complaints (complaints that cannot be resolved within 24 hours) must be notified to instructing insurers.
  • Adjusters must keep a register of non-reportable and reportable complaints, which will be subject to audit.
  • Adjusters must have an up-to-date written business continuity plan and it must be available for inspection on request.
  • Adjusters must evidence that their employees are competent and that their competence is regularly reviewed.
  • Hooker said: "The code supports insurers' requirement to govern their supply chain in the interests of delivering a sound and consistent customer response." He added that the ABI/Cila will advise insurers and loss adjusters that the terms of the code are included in all service agreements.