You are a claims handler for a liability insurer. One of the insurer's employers' liability policyholders, XYZ Ltd, owns and operates a courier service that delivers parcels. XYZ Ltd informs you that it has recently received a formal letter of claim seeking damages for alleged personal injury to Andrew, a courier employed by XYZ Ltd. The formal letter of claim states that Andrew sustained a back injury, following the repeated lifting of heavy items in and out of the courier vehicle that was provided by XYZ Ltd to Andrew.

(a) Identify, with justification, five significant items of information you will need to assess XYZ Ltd's potential liability for this claim. (10)

(b) Explain how you would allocate a general damages reserve for Andrew's claim. (4)

(c) Explain an appropriate initial reserve that you may allocate for special damages for Andrew's claim. You must show all your workings, detailing all assumptions you have made. (6)