Ministry of Justice Reforms
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
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?
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.