View Full Version : Compensation

7th Jan 2014, 16:51
I'm in no doubt there are currently large numbers of people in the UK who deserve a lot of sympathy for events which have befallen them, but compensation?

Fair enough, if someone has been negligent or reckless, but if they have been overwhelmed by natural extreme phenomena then why should they be expected to pay compensation? In any case, such compensation is only added to prices eventually, resulting in everyone contributing, including the compensated.

7th Jan 2014, 17:02
Any link to an article where they are asking for it ?

I think it is the way of the world now, people seem to expect someone
else to pay for things. No insurance, "who else can we hit up" seems to
be the way.

The one I hear of most is flooding of houses that have been built on
flood plains, we seem to have the same problem here in Aus as the UK.

7th Jan 2014, 17:11
Isn't that what insurance is for? I'd be mightily pissed if I'd been paying insurance premiums for what I assessed as a risk then my uninsured neighbour is handed compensation by the government for the event I'd insured against. Compensation is catered for by our commercial system. It should not become a matter of politics, which is what government compensation is mostly about.

It's enough to have politicians filmed at disaster scenes, wringing their hands. For them to dole out compensation only reduces the incentive to insure and makes it worse next time.

7th Jan 2014, 17:16
Compensation has become a way of life and there are many who seek to take advantage.

Even when extreme weather is the cause of loss or damage, there will always be people who will seek to obtain compensation for loss incurred.

Here's an example. A friend of mine, 'P', ordered a new car. It was due to be delivered to the dealer from where he was going to pick it up just before Christmas (I forget the exact date). Due to the extreme weather conditions, it was left parked somewhere in the midlands on a delivery trailer for several days, during which time the yard where the trailer (and others) were parked was flooded to a depth of several feet, enough for the cars on the bottom level of the trailer to be damaged by the flood water.

Who bears and pays for the loss? The dealer? The manufacturer? The purchaser? The haulage contractor?

The car cannot be sold as a new car as the dealer reckons it will be impossible to restore it to 'showroom' condition. So it may be written off or sold at a big loss.

'P' is out of pocket as he'd arranged to give his old car to a friend on the date that the new one was arriving. As the friend was depending on it, 'P' has hired a car until the dealer can give him a replacement. They don't have any for the moment and the factory is behind with orders.

Whose fault is it?

Somebody's insurance will pay, and everybody's premiums go up eventually.

7th Jan 2014, 17:23
I did a google and lots of discussion in the UK about Power companies
paying compo for those who suffered Power cuts over Xmas.

7th Jan 2014, 17:28
Somebody's insurance will pay, and everybody's premiums go up eventually

That's fair enough. Even if there's no negligence, if whoever is at the end of the line has paid premiums for no fault insurance then the insurance industry wears it - and ultimately recovers by raising premiums, subject to a competitive insurance market. That's how the system works.

It's compensation for the uninsured that damages the system. What were once ex gratia payments in extreme cases are becoming too common. People are developing an expectation.

7th Jan 2014, 17:58
People are developing an expectation.
that's something that's puzzled me as an ardent reader of Daily Mail (for more than a year now, I guess) and a non-Brit. So sorry if it's my very blond moment. :\ Can one blame people for expecting? Especially if they get the 'reward'? Or is it about the ones who give the rewards?
Like the discussion about immigration. Stop benefits and no-one (well, fewer anyway) will get on the buses sent to bring them?

tony draper
7th Jan 2014, 18:01
Haven't the compensation pimps been on strike this week? :rolleyes:

Shaggy Sheep Driver
7th Jan 2014, 18:04
Working for some years for a big US corporation (not through choice - we got taken over) I was amused that 'pay and pensions' was referred to by them as 'compensation'.

Quite apt, I though. :E

7th Jan 2014, 18:09
Can one blame people for expecting?

No, and no-one's blaming people for it. That's the point. If it's routinely provided, the expectation will naturally arise.

Loose rivets
7th Jan 2014, 18:10
The Derry and Richards Farnborough crash caused a lot of suffering and loss of life, but people were expected to accept the tragedy as being part of our country building itself up after the war. Such a different mindset.

A comment made in a test pilot's biography I was reading last summer in the UK.

9th Jan 2014, 07:43
There is so much [email protected] going around that in my break I like to sit and watch people and wonder what they are a victim of.

Looks like everybody's a victim of something these days.

Worrals in the wilds
9th Jan 2014, 07:59
I did a google and lots of discussion in the UK about Power companies paying compo for those who suffered Power cuts over Xmas. They do that in Australia, too (or at least they do in Queensland). You can claim an amount that covers spoiled food in your fridge, and if you run a business that couldn't operate due to the power failure (restaurant or similar) you can make a claim for your lost income. I think it has to be for an extended period; you can't claim just because the power went out for an hour.

Having been involved with a small business that lost several nights' income due to an ongoing power outage I can see both sides. It's not like our operating costs magically disappeared with the power :uhoh:, and the money we got was a drop in the bucket compared to the power company's annual profit.

9th Jan 2014, 09:40
Often compensation is intended to be punitive, for example compensation for denied boarding, to give the enterprise an incentive to improve their level of service. The number of involuntary denied boardings has been reduced as a result.

That one expanded to compensation for cancellations (although no impact was ever seen on the number of cancellations) and then (by the courts) to delays.

I'm going after LGW for compensation on behalf of two relatives, because they failed to provide PRM assistance, as required by EU regulation/UK law. Not that the money will make it any better, but to punish them for screwing up. Two 85 plus pensioners who had to walk from the far gates (101-113) to immigration through the maze that is Gatwick. It took them over 45 minutes! If paying out compensation gets more expensive than providing the service they are required to provide, maybe they will fix the problems. Yah, a pipe dream I know.

Solid Rust Twotter
9th Jan 2014, 11:23
The failing infrastructure in these parts has led to power outages in most areas, often for days at a time but more usually a few hours a day. Maintenance budget? What maintenance budget?

Of course, you have more chance of squeezing out a JT8D next time you take a dump than getting any compensation from the wuckfits responsible for the debacle.