Bonus scheme to duck liability cover hike

By FWi staff

A BONUS scheme launched last year by insurer NFU Mutual could help to offset the increasing cost of public and employers liability insurance.

Chairman Richard Carter said the continuing rise in personal injury claim settlements was behind the price hike which would affect all insurance companies.

However, he added that the firms mutual status has enabled its members to save almost 100 million.

Under the groups Mutual Bonus scheme policyholders renewing their insurance qualified for discounts of 2-11% depending on the type of policy and the length of time held.

Speaking at the insurers recent AGM, Mr Carter noted NFU Mutual had achieved over 1bn of income for the first time during 2000.

But he explained over 12,000 pay-outs connected with the autumn floods – combined with poor stock-market performance – led to an overall loss of 9.6m.

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