SGH (ASX) Question for Legal background

Originally posted by tongsui ↑

the only different was they provided informative update:

News Release •
Issue Date: Friday 27 November 2015
Redde plc (‘Redde’ or ‘Group’)
Government Announcement on consultations for Whiplash reform
The Board of Redde notes the comments made in the Autumn Statement on 25 November 2015 regarding compensation claims for minor whiplash injury and would like to provide shareholders with clarification concerning Redde’s personal injury legal business. The Chancellor made the following comments:
"The government intends to introduce measures to end the right to cash compensation for minor whiplash injuries, and will consult on the details in the New Year.
This will end the cycle in which responsible motorists pay higher premiums to cover false claims by others. It will remove over £1bn from the cost of providing motor insurance and the government expects the insurance industry to pass an average saving of £40 to £50 per motor insurance policy on to consumers.
More injuries will also be able to go to the small claims court as the upper limit for these claims will be increased from £1,000 to £5,000,”
The statement also said that claimants would still be entitled to claim for ‘special damages’, including treatment for any injury if required and any loss of earnings.
The Board of Redde notes that the insurance industry has long complained of the effects of fraudulent injury claims and Redde welcomes the consultation exercise in the New Year which should seek ways to ensure that fraudulent claimants and firms that support them are eliminated without disadvantaging genuine claimants.

However Redde believes that a broad brush approach that would prevent genuine claimants seeking rightful redress would meet with resistance from many champions of consumer rights.
Redde, through its legal firm NewLaw, represents genuine claimants who have suffered significant injuries, pain and suffering and have a legitimate right to make a claim. Redde supports the efforts of insurers to eliminate fraud and notes that the majority of the cases handled by NewLaw are handled on behalf of insurers and brokers.

Redde notes that at this stage none of the detail of any proposals will be known until full consultation has taken place and believes that to achieve the Government's stated aims there would need to numerous fundamental, time-consuming, far-reaching legislative changes.

Redde further notes that the activities of the Group which would be covered by legislation of the sort proposed by the Chancellor contribute less than 2.5% of the Group’s revenue.

Expand

Thanks tongsui. Slater management take note - that is how to pen an announcement.