Ministry of Justice Reforms 2013- Personal Injury claims
March, 2013
Personal Injury claims lowered?
The number of personal Injury claims made over the last decade has dramatically increased. Quite rightly, The Reforms want to reduce this and bring more balance to civil legislation. This will be achieved by reducing lawyers costs and finally combating compensation culture. Yes, I’m referring to the hundreds of Personal injury advisements pasted across the media 24/7. Both of these will collectively help toward an environment that allows insurers to pass on their saving through lower premiums.
The reforms intend to speed up settlement claims using strict time scales and fixed legal fees via a online portal, which reports any high valued Road Traffic Accident Motor claim. The portal system will eventually extend to Public and Employer Liability injury claims which will be effective from the 1st August 2013.The strict time scales will require speedier reactions from brokers and customers to get information on claims in quickly. Ultimately leading to settlement being processed earlier. This, alongside fixed legal fees, will be effective from the end of April 2013.
And it doesn’t end there. Are you aware that bans are being put in place in the new Reforms for unnecessary fees and restrictions on premiums recoverable? All of these are explained below.
One Way Cost Shifting; which means defendants, whether they win or lose a trial will have to pay for their own costs. There are exceptions to this for instance: if there’s no reasonable cause for a claim etc. Success fees will be banned and will no longer be recoverable for the losing party and awarded damage will increase by 10% to compensate for the abolishment of success fees. Referral fees shall also be banned excluding situations such as medical reports etc. Lastly, After the Event legal expenses will no longer be recoverable in the event that a defendant’s claim succeeds. These will be effective from the 2nd April 2013.
All of these new reforms will mean more savings due to fixed or reduced legal costs and the removal of some fees that have previously been included. Time frames on claims will be shortened hopefully meaning compensation will be quicker to obtain.
It’s important, now more than ever, to notify a claim and provide accurate information as soon as possible. Don’t leave it until the last minute. Ensure that its all relevant in order to process the claim and provide assistance and decisions on liability investigation. Allow yourself some lead time; you want to be Just in Time and not Out of Time! All these tips will ensure that you get your case seen to and dealt with effectively.
