Page 309 - Once a copper 10 03 2020

However, the car hire charges were being met by reluctant and opposing
insurance companies. Within a few short successful years, the industry tried to
oppose the concept in the courts. The business had grown to over 60 people
by now and we had a large fleet of hire vehicles. The insurance industry lost
its first legal forays, but not before the business we loved was pushed into
administration as a result of insurers refusing to pay.

The company Steve had started within a few years had sparked the birth of
an industry, with copycat companies appearing all over the UK.

The core principle of the business was alleviating the inconvenience of non-
fault accident motorists. Whilst the concept would face many scurrilous legal
challenges from the insurers, ultimately the common law right of motorists to
be compensated for the loss of use of their vehicle would never be
overturned.

After the years with Steve, with two companies, in 1995 I formed my own
replacement vehicle company (Hallmarque). During my tenure as CEO of this
business, I contacted the major UK insurers via the Association of British
Insurers, with a proposition to deliver more peaceful trading relationships. In
essence, my proposal centred around the common business practice of
providing a price for services paid for within credit terms (30 days) and an
increased price based on late payment interest for settlements outside of
that period.

To cut a long story short, I was invited to the ABI where I presented the case
to the insurers. Co-incidentally they were already considering a similar
process they called the General Terms of Agreement. I was asked to contact
my opposite numbers at rival accident management companies (AM’s) to
elicit their support for the process.

Within weeks we had not only started to put the process in place, but the
CEO’s of the AM companies formed a trade association so that the ABI
would know we were serious with our intentions for peace. I was elected the
inaugural Chairman of the Accident management Association that would
negotiate with insurers over agreements and rates over coming months.

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