Thursday, April 30, 2009

2010 - Year of Compensation For Injury?

Johannesburg, South Africa prepare for 2010 personal injury claims from the estimated 10 million visitors to the country, an insurance company said on Wednesday. Tourists will come from more controversial countries, increasing the risk of claims against companies catering to the tourist sector, AIG South Africa said in a statement. "Not only are we expected that the promulgation of the Consumer Protection Bill this year, which provides for strict liability for suppliers, but people from countries where litigation is more common," said Elton Julies of the company Global Loss Control Department for Liabilities group.

He said hotels, shopping centers and other outlets need to have the necessary security measures introduced to reduce the risk of injury or loss of visitors. Julies said in the U.S., the average cost of slip and trip accidents ranged from $ 7 000 (about R60 000) to $ 25 000 (R216 000) in direct costs.

Indirect costs usually increase this amount three to five times. He added that some recent injury settlements in South Africa included R600 000 for a broken foot and R380 000 for torn knee ligaments, which shows that the damage as a result of claims in South Africa were just as expensive as abroad .

According Julies, a recent analysis of the major private customers in South Africa found that 40 percent of all claims as a direct result of slip and fall incidents, 21 percent were due to cuts or falling objects, and 17 percent due to the trolley related incidents, such as children who fall between the carriages. "2010 is a huge opportunity for South Africa ... but there is a significant risk to the reputation of our hospitality and retail industries, and for the country as a whole, if we do not ensure the safety of our visitors," he said .
(source)

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