At present the cost of EL insurance is grossly inflated to cover the cost of lawyers who have to prove (or defend) liability on the part of the employer. Also, some injured/diseased employees do not receive adequate compensation for their injuries due to their own contributory negligence etc., nor do they receive any payments for several years in many cases.
Replace the adversarial system with a no-fault compensation scheme, which will not require proof of liability and will enable injured employees to receive compensation in accordance with a national scale, administered by a panel where there are difficult assessments to be made.
This can still be a compulsorily insured scheme, it just removes some of the cost, delay and disparity of compensation payments in the current system. Premiums will still be rated on the employers' business activities – i.e. a roofer attracts a higher premium than an accountant.
It will, however, upset an awful lot of lawyers.
Why does this idea matter?
- Reduces cost to employers
- Removes unnecessary bureaucracy
- Provides quicker compensation payments.
- Reduces the dependance on state benefits
- Maintains an income for insurers and brokers
- Removes adversarial process