LEGAL
Driving ahead with a new regime
Andrew Welch, partner and head of insurance at Stephensons Solicitors, talks
circumstances will there be an
oral hearing.
brokers through the new road traffic claims handling process
There are strict deadlines
to all of the stages and payment
I
nsurers have felt in recent England and Wales where the liability at the conclusion of of fixed costs, which are
years that claims costs for accident occurred on or after stage one then there is a significantly lower than the
personal injury claims have the 6 April 2010 if the value of settlement pack which the current costs. These costs are
considerably outstripped the claim is between £1,000 and claimant’s solicitor will payable, along with interim
inflation and they have been £10,000 and liability is not in complete and serve on the payments, by insurers as the
lobbying the Government to dispute. insurer, again electronically, case progresses.
take steps to control those There are basically three with a settlement offer. The idea is that the whole
costs. stages to the system. In stage The pack will include a system will be very much
This has now occurred with one the claimant’s solicitor will medical report which will be
the approval by Ministers of a complete a detailed claim obtained in a fairly standard
new claims process to handle notification claim form which is format. The insurer then has a
low value personal injury claims submitted electronically to the limited time to either agree the
in road traffic accidents. As insurer. The insurer then has 15 settlement figure or make a
road traffic accidents account working days to respond on counter proposal. If the parties
for nearly three quarters of all liability. If liability is admitted cannot reach a settlement then
personal injury claims, this then the claim continues to the case will then move to stage
process is likely to cover the proceed through the process. If three where court proceedings
majority of personal injury it is denied or the 15 day time will be issued and there will be
claims that the insurers face limit is missed then the claim is a fairly short, paper only,
and should have a significant excluded from the process with process where the Judge will
impact on claims costs. higher costs being incurred by decide how much to award
Andrew Welch
It will apply to all road the insurer thereafter. having read the submissions by
Partner and Head of Insurance
traffic accident claims in If the insurer admits both parties. Only in unusual
Stephensons Solicitors
24 Insurance Brokers’ Monthly
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