ABI: New compensation arrangements mean quicker compensation for people injured in motor accidents
Around 400,000 people injured in road accidents could benefit from much speedier compensation under a more streamlined compensation system, announced today by the Ministry of Justice. The new arrangements follow an ABI campaign for a simpler, quicker and more cost-effective system.
The new system will apply to personal injury claims valued between £1,000 to £10,000 in damages – around 80% of all motor personal injury claims. As well as speeding up claims, the new process will reduce unnecessary legal costs through setting a fixed legal cost for each stage of the process. It will involve the use of standardised electronic claim forms to enable key decisions to be made more quickly and reduce duplication. Challenging new timelines have been built into the process to ensure much quicker compensation payments.
Nick Starling, the ABI’s Director of General Insurance and Health, said:
“The ABI has long argued for a simpler, more streamlined compensation system that works in the interests of consumers, so we completely support today’s announcement. This new process will cut down on delays, and reduce the high legal costs that are paid for through motor insurance premiums.
“It is now vital that employees injured at work have the same opportunity as those injured on our roads to benefit from this new process, so we call on the Government to extend it to cover employers’ liability insurance claims.”
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Notes for Editors
1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)
2. The new process will be made up of three separate stages:
. Stage one involves the collation of information to complete the claim notification form. Once the claimant representative sends the claim notification form to the defendant insurer, the insurer will have 15 days in which to respond. If liability is accepted, then the claim continues to the next stage of the process. If liability is denied, or contributory negligence of the claimant is alleged, then the claim falls out of the process at that point.
. Stage two involves the claimant representative gathering supporting evidence for the claim, and completing a settlement pack together with an offer for damages. The insurer will then have 15 days to consider and either accept or reject the offer, and make a counter-offer where relevant. A further 20 days for negotiations are allowed. If there is no agreement between the parties, then the claimant representative prepares documentation for stage three of the process.
. Stage three of the process may be required where there is no agreement between the parties as to the value of the claim. After 10 business days from the date the claimant representative sent the stage three documentation to the insurer, the claimant may apply to the court to determine damages. The insurer can also elect to commence proceedings if the claimant representative has not sent the stage three documentation to the insurer within 15 days of the end of stage two.
3. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.
4. An ISDN line is available for broadcasts.
5. More news and information from the ABI is available on our web site, www.abi.org.uk.
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