Thursday, September 24, 2009

Ministry of Justice issues statement about claims reforms

Michael Willis MP at The Ministry of Justice issued a statement a couple of days ago about a new claims process for road traffic accidents worth up to £10,000. To read the full statement on the website of the Association of Personal Injury Lawyers, click here. The aim is apparently to implement by April 2010. There are various exclusions but for those cases which fall into the scheme the agreed fixed costs will be:
£400 for Stage 1 – where 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.
£250 paper hearing / £500 oral hearing for Stage 3 – where the parties cannot agree a settlement and the case goes to court.

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