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Case study: Coal Health Claims

Improving services through process re-engineering

The objective: compensate miners faster and with less red tape.

The Coal Health Compensation (CHC) schemes covering respiratory and vibration diseases, are the biggest personal injury schemes in British legal history. In February 2004, Capita was appointed by the Department of Energy and Climate Change to administer both schemes.

"Our main objective was to get miners compensated faster and with less red tape but without compromising the schemes" says Andrew Beer, Managing Director of Capita Insurance Services BPO. "To do that we had to develop employees’ skills, improve quality standards and deliver efficiencies in claims processing. Our business transformation programme focused on productivity and staff management, short and long term planning, process re-engineering and IT. The programme yielded immediate results."

To provide a one-stop shop for devising and implementing solutions and improvements, we created a solutions centre that brought together key support functions such as planning, project management, quality and business change. And to measure improvements across all areas we introduced a business excellence model. After 3 years we’d delivered an overall operational improvement of around 70%*, measured against the model. One change alone – the introduction of compensation calculators – saved 200 working years and £60m in related costs, and we’ve saved almost £20m through fraud investigation.

In 2007, CHC received Recognised for Excellence 5 Star status, winning a special award for Employee Satisfaction. We also won the North of England Excellence Award for private sector companies. This was followed in 2008 by a coveted Ambassadors’ Blue Riband Award in the Chartered Quality Institute and London Excellence national award scheme.

Today, Capita pays out on average £0.5m in compensation to former miners every working day. And by January 2009, over 738,000 claims had been settled, involving payments totalling over £3.98bn.

*Source: European Foundation of Quality Management

Andrew Beer