The process

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The Claims Allocation and Handling Agreement (CAHA) is a multilateral contract between companies licensed to operate railway assets. The Office of Rail Regulation requires operating companies to have an approved arrangement for the allocation of liabilities and the handling of claims.

Its main aims are
  • to help ensure that third parties with claims against the industry are not prejudiced as a result of the privatisation and fragmentation of activities previously undertaken by the British Railways Board
  • to minimise the scope for, and time spent on, disputes over the allocation within the industry of liability for third-party claims.
CAHA seeks to meet the first aim of protecting third parties by
  • avoiding the need for a third party to establish which CAHA Party may be legally liable for his claim
  • avoiding delay in settlement of a claim while liability is allocated within the industry
  • requiring claims to be handled efficiently and expeditiously
  • extending the arrangements relating to CAHA Parties to their contractors and sub-contractors.
CAHA seeks to meet the second aim of protecting the industry by
  • minimising the scope for intra-industry arguments about liability allocation;
  • providing a mechanism for resolving any disputes arising within the industry relatively quickly and cheaply;
  • establishing agreed procedures for claims handling.

CAHA does not directly seek to reduce claims causation or to control unwarranted claims.