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Judge criticises car insurers over repairs to vehicles damaged in accidents
Tue, 20 Sep 2011

Royal and Sun Alliance has been strongly criticised by a judge over how it recovers the cost of repairs to vehicles that are insured with it and damaged in accidents.

Judge Platt says that Royal and Sun Alliance has used a subsidiary company which receives the invoice for the repairs carried out and then inflates the charges to increase profits. RSA Insurance strongly denies that it has acted inappropriately.

According to the Judge, there is evidence which suggests that the subsidiary company has inflated labour costs and made other charges it could not account for before passing the cost onto the insurance company of the driver who was responsible for the accident.

Several insurers disagree with these charges and are refusing to pay. They claim that RSA Insurance is adding its own charges that cannot be justified. RSA is then taking these companies to court to try and seek payment. One district judge estimates that over 100 cases involving RSA Insurance are arriving at County Courts each week.
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