The Direct Settlement Scheme is a framework through which an injured employee can obtain compensation without needing to instruct a solicitor. In this way we can avoid the significant legal costs incurred when claims are made with legal representation.
The Scheme relies upon policyholders providing notification of an incident – as required by the policy – prior to the involvement of a solicitor acting for the injured employee. We believe a high proportion of incidents will be suitable for The Direct Settlement Scheme. Typically, these will be cases where the policyholder/employer is considered to be legally liable for the injuries sustained and where, in the absence of intervention under the Scheme, a formal claim is deemed inevitable. The suitability of the Scheme will, however, be discussed with the policyholder by the appointed loss adjuster on a case by case basis.
If it is agreed that use of the Scheme is suitable, details will be sent directly to the injured employee who will be invited to ‘apply for compensation’. Upon receipt of this application, we will contact the employee and agree to discuss compensation once the employee’s injuries have been determined and his financial losses established. The services of a rehabilitation provider will be used as necessary to hasten the employee’s recovery.
Direct Settlement Scheme is also used as an adjunct to ReWage where it is felt the injured employee will want compensation in addition to wages payments reimbursed by ReWage.
Once the injuries have been determined and the claim is capable of quantification, we will make the employee an offer of compensation. If the offer has been reduced to reflect contributory negligence on the part of the employee, the loss adjuster will fully explain the reasoning for this to the employee. The offer of compensation will be accompanied by £250 as a ‘Consultation Contribution’. This is intended to enable the employee to seek legal advice upon the sufficiency of the offer of compensation we have made. In this way, the employee can feel satisfied that the offer we have made is fair and reasonable in all the circumstances. The Consultation Contribution is not returnable or recoverable in the event that the employee chooses not to take this step.
As The Direct Settlement Scheme is essentially a settlement ‘technique’, there are no cost or policy implications.