Personal Injury Claims Reforms 2007  

Learn more about the personal injury reforms planned for 2008

There has been much discussion about the forthcoming proposed reforms which are due to be implemented late 2007 or early in 2008.

Both APIL & FOIL have provided their views on the matter. These issues relate to the most part to accident compensation claims and not medical negligence claims. There will be an impact on clinical negligence cases but they are subject to a separate protocol.  

Here we provide a snapshot of the key issues and proposals:  

Track Limits  

Small Track - (Small claims) personal injury limit to remain at £1,000. Fast Track limits for personal injury cases will be raised from £15,000 - £25,000  

Fixed Costs   - A fixed costs regime (similar to that already in place for Road Accident Claims - RTA's) may be implemented for EL / PL claims. There has been stiff opposition to this proposal from claimant lawyers who fear that work carried out will not be reflected in the fixed fee. The regime imposed for RTA's has been criticised for its failure to increase the fixed fee structure which has remained unchanged since October 2003.  

Claim Notification  

Solicitors must notify details of any claim to the insurer within 5 days of taking instructions from the claimant. This applies only to RTA / EL / PL claims  

Liability decisions  

The defendants insurers have 15 working days (from day of notification of the claim) to admit liability in simple RTA cases. This period is extended to 30 working days for EL / PL cases. Claimant solicitors at this stage will cease any front loading investigative work - this will immediately reduce the costs incurred.   Rehabilitation  for conditions such as whiplash injuries will be offered where appropriate.   Crucially - where an admission is made by either party - it shall be binding. (this latter point will please many claimant solicitors who have fallen victim to late and very unreasonable resurrected liability arguments)  

Settlement  

The claimant solicitor will send out a "Settlement Pack" within 15 working days of receiving the medical report from an agreed expert. The pack should contain a copy of the medical report and a Pat 36 offer to settle - presuming the case is capable of settlement at that stage.   The defendant insurer has 10 working days to respond by either accepting the claimants Part 36 offer OR making a counter offer. If negotiations falter, designated "names" or contacts will intervene.  

Insurance  

After the Event insurance (ATE) premiums relating to cover taken out from the outset of a claim will NO LONGER be recoverable. Claimant solicitors must arrange cover only when liability has been denied and the prospect of legal proceedings becomes a reality. This is a controversial area but nevertheless one that should be embraced because inevitably costs will be reduced. The only concern here is that the ATE market will be decimated and the cost of individual policies will soar.  

Implementation  

The consultation period ended on the 13th July 2007 with both sides (ie: APIL & FOIL) making their representations. The reforms will be subject to further re-moulding and discussion before the end of the year and should be rolled out by December 2007 -  February 2008.        

The Claims Connection - UK personal injury claims compensation specialists.