new procedure for low cost road traffic personal injury
claims
As from 6 April 2010 a new electronic portal system will be
implemented to deal with all compensation claims for personal
injury arising out of road traffic accidents which range from
£1,000 to £10,000. The new system will enable claims to be
dealt with more swiftly and clients to obtain settlements
earlier.
The system will consist of three stages:
stage 1
The claimant lawyer will complete a claim
notification form (CNF) which will include details of the accident,
defendants details, injuries sustained and material damage and the
CNF will be forwarded to the compensating insurer
electronically.
The insurer will have 15 working days in which
to respond with an admission or denial of liability. The
insurer will return the CFN if they do not insure the vehicle and
the claim will be removed from the process if there is any
contributory negligence (other than non-wearing of seat belts) and
the investigation period will be extended to 30 days if the claim
is to be dealt with under Article 75.
The investigation process is also extended to
30 days if the claim is against the Motor Insurers Bureau under the
Uninsured Drivers’ Agreement.
Once liability is accepted a fixed fee of £400
will become payable to the claimant lawyer.
Following acceptance of liability, the
claimant lawyer obtains the medical evidence and further
information required to complete a settlement pack and no fixed
time period has be set for obtaining the medical evidence and
information.
At this point a further fixed fee of £800
becomes payable
stage 2
The claimant lawyer completes the settlement
pack requesting final or interim settlement which includes heads of
damages and medical report which is then forwarded to the insurer
electronically with all evidence attached.
Within 15 days the insurer must:
- agree settlement in accordance with the claimant lawyer’s
offer; or
- make a counter offer by returning the settlement pack with
appropriate reasons against particular heads of damage
A further 20 days are allowed to negotiate
counter offers.
stage 3
This stage will only come into affect when
although liability is accepted, the parties cannot agree a
settlement figure and the claim will then proceed to a quantum
hearing.
Fixed costs are payable for either a paper or oral hearing and
copies of the CNF and offers made via the portal can be printed for
submission to the quantum hearing.
Download
our information sheet on the new procedures.