Agenda item

1.      Mrs Crabtree, Deputy Cabinet Member for Finance, and Lee Manser, Insurance Manager, introduced the report which outlined the current situation in terms of claims and the legal processes relating to managing Highways Insurance claims.  Key points included that KCC had seen the lowest number of claims recorded in 2017 for five years at 649.  Since January, 1282 had already been recorded in 2018 and this was believed to be due to the severe weather and the associated increased deterioration of the highway.  However, it was highlighted that the number of claims being submitted was beginning to slow.

2.      Mr Manser further explained the processes and legal position in relation to Highways Insurance Claims.  He advised that s41 and s58 were the two key sections of the Highways Act and that they meant that a claimant must show that the highway was dangerous and that this was the result of a failure to maintain.  Mr Manser explained that there were always a number of factors involved in each claim and that they were all assessed on their own merits.  However, he advised that even if a breach of s41 could be proved, that did not automatically mean that a claim would be paid.  KCC was able to provide a defence that demonstrated that the Council had a reasonable maintenance policy and that this was being reasonably carried out.  This meant that the existence of a defect in the road did not automatically constitute liability for KCC.  Mr Manser highlighted the impact of the severe weather in terms of the significant increase in claims it had precipitated.  He advised that this correlation was supported by information from the South East Insurance Group indicating that all south eastern local authorities were in a similar position in terms of increased claim numbers.  Mr Manser also clarified the statistics in the report, advising that the settlement rate for claims was 14%.  Of the claims made in 2018, 799 had been rejected and 299 were still subject to assessment but he advised that figures were changing daily as more cases were resolved and other claims were submitted – to date £16k had been paid out in 2018 in settled claims.

3.      A Member asked questions about the independence of the claim assessment process, reading out a statement from the same stakeholder group as earlier, which set out criticisms of the KCC Highways Insurance team and their processes.

4.      Mr Manser reassured the Committee that KCC had sympathy for those road users who had suffered due to defects in the road network but that the claim management process was undertaken in line with the Highways Act and relevant guidance, which meant that liability was not always present in these cases.

5.      Responding to comments and questions, Mr Manser noted concerns regarding the wording on the claims pages of KCC website, recognising the Committee’s view that it was not inviting or supportive and appeared designed to dissuade people from making claims.

6.      Responding to further questions, Mr Manser clarified s41 of the Highways Act which required that KCC maintain the highway.  In making assessments of any defects relevant to claims, the inspection records were reviewed and taken into account.  This linked to the s58 defence of evidencing that an appropriate maintenance policy was in place and that it had been applied correctly; so inspection records demonstrating that due care had been given in seeking to maintain the highway were key in the consideration and management of claims.  Members noted the reasonableness test within this process.

RESOLVED that;

-       the information provided by the Deputy Cabinet Member and Officers and the answers to the Committee’s questions be noted; and

-       that the Deputy Cabinet Member and Insurance team consider the points made by the Committee, in particular the need to review the Highway Insurance claim webpage in terms of language and tone and generally improve communication about the processes involved.