Around half a million people injured in road accidents  will receive  compensation they are entitled to much more quickly under a streamlined compensation process that comes into force today, 30 April, says the ABI. The ABI has been campaigning for some time for a simpler, speedier and more cost-effective compensation system. 

The changes will cut the average time taken to settle a personal injury claim following a road accident from two years to no more than nine months. They will apply to claims occurring after 30 April.  

The changes, announced by The Ministry of Justice last September, will apply to motor personal injury claims valued between £1,000 to £10,000 – almost 80% of all motor personal injury claims. The changes involve three stages for each claim:  collation of information to submit the claim; the claimant representative gathering evidence for the claim, and a final stage if no agreement can be reached on the claim value. 

  Under the new process:
·        Challenging time limits for insurers and legal representatives will ensure speedy progress of claims. For example, an insurer must decide on liability within 15 working days of being notified of the claim.
·        Standardised claim forms will reduce duplication of information.
·        Legal costs will be fixed which will reduce the current legal bills that are adding an extra 10% to motor premiums paid by all motorists.   

  Nick Starling, the ABI’s Director of General Insurance and Health, said:  

“These changes will not only mean quicker compensation for many, but will    also reduce the level of legal costs that all motorists ultimately end up paying for through their motor premiums. We expect that these changes will be the start of wider ranging reforms to ensure that more claimants benefit from a simpler and speedier compensation process, and we would like to see this new process extended to cover employers’ liability insurance claims.” 

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Notes

 1.        Enquiries to: Malcolm Tarling   020 7216 7410 (Mobile: 07776 147 667) Erfan Hussain     20 7216 7411 (Mobile: 07712 841 184) Kelly Ostler-Coyle   020 7216 7415 (Mobile: 07968 364 302)   Portal enquiries (see 3 below): Hayley Tea      020 8661 2444 (Mobile: 07837 052559) 
   
2.        The new process will be made up of three separate stages:   a.    Stage one involves the collation of information to complete the claim notification form. Once the claimant representative sends the claim notification form to the defendant insurer, the insurer will have 15 days in which to respond. If liability is accepted, then the claim continues to the next stage of the process. If liability is denied, or contributory negligence of the claimant is alleged, then the claim falls out of the process at that point. b.    Stage two involves the claimant representative gathering supporting evidence for the claim, and completing a settlement pack together with an offer for damages. The insurer will then have 15 days to consider and either accept or reject the offer, and make a counter-offer where relevant. A further 20 days for negotiations are allowed. If there is no agreement between the parties, then the claimant representative prepares documentation for stage three of the process. c.    Stage three of the process may be required where there is no agreement between the parties as to the value of the claim. After 10 business days from the date the claimant representative sent the stage three documentation to the insurer, the claimant may apply to the court to determine damages. The insurer can also elect to commence proceedings if the claimant representative has not sent the stage three documentation to the insurer within 15 days of the end of stage two. 

  3.      The quick electronic exchange of relevant claims information and related information, including medical records, will be achieved through a new electronic portal, developed by CRIF Decision Solutions Ltd. Insurers, self-insured organisations and claimant lawyers will need to register to use the portal. To register see: www.rtapiclaimsprocess.org.uk –‘how to sign up to the portal’. 

  4.   The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.  
5.     An ISDN line is available for
broadcasts.  
6.     More news and information from the ABI is available on our web site, www.abi.org.uk.