According to insurance Times, the Covid-19 pandemic may be boosting income opportunities for credit hire firms, something which cumulatively, they say could end up being a big financial hit for insurers.
Credit hire is “still a big issue” that is “coming back with something of a vengeance at the moment”, according to Ian Davies, partner and head of motor at law firm Kennedys.
Davies suggests that credit hire organisations are using the ongoing Covid-19 pandemic to reap further income opportunities, for example around additional cleaning costs. He adds that “challenging cases” linked to the national lockdown are also beginning to be more prevalent.
The CHO Forum is aware that a number of CHOs have had to increase the scale of litigation to try to settle claims that would ordinarily have settled in the GTA or other protocol. Clearly, the battle lines are already being drawn for a winter of discontent.