News & Media

Ministry Of Justice Claims Reforms
Date Posted: 02/08/2013

This year sees the introduction of changes in the way injury claims arising out of motor accidents are dealt with, and from 1st August changes in the way employers and public liability claims are dealt with.

Why did things have to change?

For some time legal costs in injury claims have been increasing. By 2009 it was estimated that for every £1 of damages awarded, legal costs were 86 pence. In recent years there have been occasions where legal costs outweigh the damages awarded – in a 2012 case the claimant received £12,750 in damages and legal costs were £75,000.

In 2010 a system was put in place to speed up the settlement of motor personal injury claims and limit the legal costs by introducing strict timescales and fixed legal fees. This required solicitors to report claims between £1,000 and £10,000 via an online portal.

What is happening now?

The use of the online portal has been further developed, as follows:

  • The upper limit for motor personal injury claims is increased to £25,000
  • Most employers and public liability personal injury claims up to the value of £25,000 will be handled in this way
  • Strict timescales for decisions on liability will apply, as follows:
    • Motor 15 days
    • Employers liability 30 days
    • Public liability 40 days

How does this affect me?

These changes should result in the following benefits to you:

  • Making lawyers costs proportionate
  • Combating the compensation culture
  • Enabling insurers to pass on claims cost savings to customers through lower premiums

To maximize these benefits we need your help to give your insurers as much time as possible to investigate and respond within the new timelines, so please:

  • In the event of an actual or potential claim, please notify us immediately
  • Provide full, accurate and complete documentation as quickly as possible – please see enclosed checklist
  • If you receive a Claims Notification Form (CNF) direct from the third party solicitors please on the same day acknowledge receipt to the solicitor (but do not comment on liability) and forward the CNF to us.

We offer a wide range of insurance cover, including: