New streamline claims process is be established for road traffic accident (RTA)  personal injury claims valued between £1000 and £10,000.    

Implemented 30th April 2010

Winston Solicitors LLP - UPDATE 1st July 2010
The MOJ claims process is finally starting to galvanise and we are encountering fewer working issues as the weeks roll by.

We have noticed an increase in insurers looking to settle without fully progressing through the settlement pack stage 2 and insisting upon medical evidence. Each case must be determined on its own merits but some clients are taking advantage of the generous early offers.

Practitioners should be aware that the RaPId (sic) helpdesk  responds better when you phone in rather than send an email.

BACKGROUND

The main objectives of the rather radical changes to the road accident claims process focus on:

• Accelerating the process

• Reducing legal costs and administrative expenses

• Reducing correspondence exchanges

• Reducing the scope for litigation    

The new process streamlines the procedure and cuts down on unnecessary debates regarding frivolous liability arguments or choice of suitable medical experts. The changes impose strict time-limits on insurers who are likely to struggle to comply with the deadlines. Nb; Be aware that MIB claims have different deadlines.  If you have been involved in a road accident Winston Solicitors offer an injury compensation advice service.

THE NEW PROCESS  

STAGE 1

Rather than send a detailed “letter of claim” to defendant insurers which would commence the claim under the current process, the new regime will rely upon standard

Claim Notification Forms (CNF) being completed by the solicitor. This is a simple (but detailed) claim form with standard mandatory fields.   As soon as the claimant solicitor has all the information required to complete the CNF, it is then sent electronically to the defendant’s insurer   When the CNF has dispatched (assuming all mandatory fields have been completed) the defendant insurer will have 15 business days in which to respond.  

Fixed recoverable costs of £400 will be paid at the end of Stage 1 where liability is admitted, (whether or not contributory negligence is alleged). A 12.5% success fee10 will be applied to Stage 1 fixed recoverable costs. However, the success fee element for Stage 1 will only be payable at the end of Stage 2 where the case settles.    

STAGE 2

Once the defendant’s insurer has made an admission of liability, the claimant solicitor will obtain a medical report.   There will be no fixed timetable for obtaining the medical report.   On receipt of the medical report and before it is sent to the defendant’s insurer, it will be checked by the claimant for factual errors.  

Within 15 business days of the report being confirmed as factually accurate the claimant solicitor will complete the Stage 2 Settlement Pack Form. This standard form allows the solicitor to present a proposed / desired settlement figure to the defendant insurer. The insurer has 15 business days from receipt of the settlement pack to consider and either accept the claimant’s offer or make a counter offer  

Where the case can be agreed at STAGE 2 Fixed recoverable costs of £800 will apply to all claims taken forward under this process from the beginning to the end of Stage 2. This will attract 12.5% success fee uplift, where the case settles.   The claim can leave the process altogether in any one of a number of circumstances. Usually this will revolve around missed deadlines by the insurer, where there are major issues on liability / quantum or where fraud is suspected.  

STAGE 3

Where quantum cannot be agreed by the end of Stage 2 an application will be made to the court to determine quantum. The application will usually be made by the claimant solicitor.   After 10 business days from the date the claimant sent the Stage 3 Settlement Pack to the insurer, the claimant may make the application to the court for the amount of damages to be determined, whether or not a response has been received from the defendant’s insurer. The application will be made to the appropriate court in accordance with the provisions of the Civil Procedure Rules.      

SUMMARY OF COSTS  

• £400 for Stage 1 (the claimant solicitor completes the claim notification form and sends it to the insurer who may admit/deny liability);  

• £800 for Stage 2 (where liability is admitted, the claimant obtains a medical report and the process continues with offers and negotiation of a settlement to a strict timetable); and  

• £250 paper hearing / £500 oral hearing for Stage 3 (where the parties cannot agree a settlement and the case goes to court).