The ABI welcomes today’s Government announcement to extend the claims limit for settling personal injury motor claims from £10,000 to £25,000. This will mean faster compensation pay-outs for an additional 55,000 people injured in road crashes a year. Around 97% of motor personal injury claimants will now be able to claim through the fast track process.

The fast track process was introduced in April 2010 and involves stringent time limits for insurers and legal representatives in establishing any liability, standardised claim forms and fixed legal costs.

The ABI also welcomes the Government’s intention to introduce a similar scheme for claims for workplace-related injuries and public liability claims.

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

“This is good news for thousands more claimants who will get their compensation much more quickly. In less than two years evidence shows that this process is leading to the average pay-out time being more than halved and lower legal costs.

“The Government must now press on with its wide-ranging and long overdue reforms to civil litigation to ensure that steps such as reducing fixed legal costs lead to a more cost efficient compensation system.”



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Notes

Notes for Editors

1. Enquiries to:
Malcolm Tarling 020 7216 7410 Mobile: 07776 147 667
Linsey White 020 7216 7415 Mobile: 07885 998011
Sarah Bailey 020 7216 7514 Mobile: 07725 372636
Adeola Ajayi 020 7216 7521 Mobile: 07725 245284

2. The ABI is the voice of the UK’s insurance, investment and long-term savings industry. It has over 300 members, which together account for around 90% of premiums in the UK domestic market.
The ABI’s role is to:
- Be the voice of the UK insurance industry, leading debate and speaking up for insurers.
- Represent the UK insurance industry to government, regulators and policy makers in the UK, EU and internationally, driving effective public policy and regulation.
- Advocate high standards of customer service within the industry and provide useful information to the public about insurance.
- Promote the benefits of insurance to the government, regulators, policy makers and the public.

The UK insurance industry is the third largest in the world and the largest in Europe. It is a vital part of the UK economy, managing investments amounting to 26% of the UK’s net worth and contributing the fourth highest corporation tax of any sector. Employing over 290,000 people in the UK alone, the insurance industry is also one of this country’s major exporters, with 28% of its net premium income coming from overseas business.
Insurance and businesses protect themselves against the everyday risks they face, enabling people to own their own homes, travel overseas, provide for a financially secure future and run businesses. Insurance underpins a healthy and prosperous society, enabling businesses and individuals to thrive, safe in the knowledge that problems can be handled and risks carefully managed. Every day, our members pay out £147 million in benefits to pensioners and long-term savers as well as £60 million in general insurance claims.

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4. More news and information from the ABI is available on our web site, www.abi.org.uk.