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Ministry of Justice claims reforms
The Ministry of Justice has introduced a new process for the handling of personal injury motor claims.
The object is to reduce the time taken to resolve a claim and to contain legal costs. Claims should now be submitted via a website to the last known insurer who will have 15 days to respond.
There are three stages to the new process. The first two stages are:
• Identifying the insurer and establishing liability
• Negotiation on settlement
A 15 day time limit applies at stages 1 and 2 and costs are fixed.
The claim only progresses to stage 3, to be resolved by a judge, where settlement cannot be agreed. Here again the costs are fixed dependent on whether it is “paper” hearing, which will be used in the majority of cases, or an oral submission.
What does this mean for policyholders?
• Keeping the Motor Insurance Database up to date is important in identifying the correct insurer
• Reporting all accidents, whether someone is injured or not, when they happen
• Providing as much information as possible to your broker or insurer
• Responding quickly to requests from insurers for additional information
If the insurer contests liability, or fails to meet the timescales, then the claim leaves the fast track process and goes back into the usual court procedures.
Next Steps
To discuss the issues raised in this article or for further information, please speak to your usual Perkins Slade contact. Alternatively you can call 0121 698 8000 and ask to speak to a member of our Private Clients team or email privateclients@perkins-slade.com
