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Personal Injury News

NHS will charge over injuries that win pay-outs
Tens of millions of pounds will be recouped by the National Health Service from insurance companies in cases where compensation has been awarded for personal injuries, under government plans published yesterday.

A consultation paper estimates that the NHS would benefit to the tune of £150 million a year if the current scheme of recovering costs from insurers for people injured in road accidents and treated by the NHS is extended. But insurers said premiums would rise.

The road traffic accident scheme already brings in £105 million and officials say that a wider injury costs recovery scheme, mostly from injury at work, would more than double the figure.

Rosie Winterton, the health minister, said yesterday: "This policy will encourage employers to take steps to prevent employees being injured and should increase the total recouped each year to around £250 million for the NHS - equivalent to 53,000 hip operations and 11,000 newly qualified nurses.

"It is unacceptable that taxpayers have to pay for the medical treatment of someone injured at work simply because employers fail to take adequate steps to protect their workforce.

"Individual hospitals will now be able to recover the costs and decide where they want to reinvest that money to improve services they want."

The scheme is expected to start next year.

The Law Commission carried out a wide-ranging consultation on expanding the road traffic accident scheme to cover all cases of personal injury where compensation is paid. It argued that the wrong-doer should be responsible for the costs of their actions rather than the taxpayer.

Brendan Barber, the general secretary of the Trades Union Congress, said: "It is important that negligent employers pay the full cost of their actions rather than expecting the taxpayers to subsidise their failures to protect workers."

But the Association of British Insurers gave warning that the scheme would cause premiums to rise by five %.

Stephen Sklaroff, the ABI's deputy director-general, said: "Today's announcement is badly timed. It will add to the financial burdens on businesses, many of which are already feeling the pressure of higher insurance costs."

telegraph co.uk: 25/09/2004