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Faster compensation for people injured in road accidents


 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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Last updated 01/07/2016