Employers' liability rates could rise by up to 5% after a government decision to allow the NHS to claw back costs from insurers.

Insurance Times reported in May how the government was proposing to force insurers to pay injured claimants' NHS costs.

Currently, insurers pay the NHS costs of road traffic accident victims, but legal changes, introduced this week will extend the scheme to apply to employers' liability (EL) and public liability (PL) claims.

QBE estimates EL rates will rise by up to 5% while PL will also see an upward turn. Allianz Cornhill has estimated the move could cost insurers as much as £150m annually.

The final hospital bill will be capped at £37,100 per claimant. The average outpatient costs the NHS £505 a day and inpatients costs £620, meaning insurers could pay for up to 60 days in hospital.