Third Party Capture Scheme

Catlin’s Third Party Capture Scheme (TPCS) is a new initiative designed to reduce escalating claims costs which have arisen due to procedural delays in Insurers receiving notification of potential TP claims.

Nowadays it is common practice that the TP will report his/her claim to an intermediary which in turn brings into play credit hirers, credit repairers and legal representatives all of whom make money from their involvement and consequently increase significantly the final cost of the claim.

Whilst it can be argued that sometimes these services provide a benefit to the innocent TP they are often wholly unnecessary especially where the TP simply wishes to have his/her vehicle repaired, have the use of alternative transport and receive basic ‘out of pocket’ expenses.

The additional annual cost to the motor insurance industry is estimated to be £900m adding about 20% to each vehicle’s insurance premium.

The simple way to combat this trend is to get the innocent TP talking to our claims team immediately after the incident.

Procedure

The procedure is simple and depends solely on the Insured driver carrying out the following actions:

1. Immediately after an incident (where the TP is not likely to be at fault), the driver hands over a credit card sized bump card which has been pre-completed with his/her own name, vehicle registration number and insurance policy details. The card has instructions to the TP to call our claims team direct on a 24/7 freephone number. (A legal disclaimer is included stating that no liability is admitted at this stage.)

2. In addition the driver is also supplied with a basic incident report form which prompts the driver to obtain all the necessary details at the scene. This not only helps in quickly resolving the TP claim but also increases the likelihood of detecting fraudulent claims. Once the details have been jotted down, this information can also be relayed to the claims team.

Implementation

At quotation stage we will offer our terms and premium based on the following additional conditions:

1. The proposer agrees to report all claims direct to our claims team on the dedicated freephone number.

2. The proposer agrees to receive a supply of bump cards and incident report forms.

3. The proposer agrees to train/brief its drivers on the post accident procedure.

4. Our claims team will be notified of all participating policyholders and each reported claim would be monitored for overall performance.

In circumstances where the above is not adhered to it will be deemed that the policyholder is in breach of the terms of the insurance which may result in underwriters cancelling cover.

Broker benefits

We are confident that there will be sufficient savings in the policyholder’s claims experience to allow us to offer an additional 5% commission.

Policyholder benefits

Premium rebates to policyholders will be offered where the claims experience achieves prescribed levels of profitability. In addition, improving claims experiences may result in lower premiums.