Ministry Of Justice Reforms
Ministry of Justice (MoJ) reforms affect road traffic accidents, public and employers' liability and have an impact on all our customers. Quick and accurate reporting of accidents is essential. Strict deadlines have been set for the admission or denial of liability.
The key message to you is that actual and potential claims need to be notified as quickly as possible
to give Insurers as much time as possible to investigate and respond within MoJ timescales. The aim is to combat the compensation culture, reduce legal fees and ultimately reduce premium levels. The reforms represent the largest overhaul to the personal injuries legal framework in England and Wales for over
What are the reforms?
In 2010 the Government introduced a system requiring solicitors to report all road traffic accident (RTA) personal injury claims with a value of between £1,000 and £10,000 via an online portal. This portal is designed to speed up the process and restrict fees. The main change now will be to increase the upper financial limit to £25,000 for motor personal injury claims. It is thought that this will bring in a further
55,000 claims into the process. Further, the MoJ portal process is being extended to pick up Public and Employers’ Liability personal injury claims up to £25,000, with certain exceptions.
Timescales to admit or deny liability are set at:
RTA - 15 days
EL - 30 days (currently 90 days)
PL - 40 days (currently 90 days)
If contributory negligence is alleged the claim will not be processed via the portal. Other examples of claims that will not be processed via the portal are:
- Employers Liability disease claims where there is more than one defendant
- Mesothelioma claims
- Clinical negligence
The strict deadlines to admit or dispute liability mean that you will need to quickly supply insurers with the relevant information relating to the accident.
Fixed and reduced solicitors fees
The reforms have introduced fixed legal fees at various stages which represent a reduction in costs. There are also disincentives to deter solicitors from driving claims outside of the portal.
The introduction of the reforms of legal costs apply to RTA, Employers’ and Public Liability claims will be implemented from 1st April. The extension of the portal for RTA claims between £10,000 and £25,000 and the extension of the portal to Employers’ and Public Liability claims between £1,000 and £25,000 will apply to accidents from 1st August 2013.
The impact on you, the policyholder
To ensure that personal injury claims stay within timescales, you need to work with us as your broker and the insurers. In the event of a claim, you will be required to:
- Notify actual or potential claims immediately
- Ensure information provided is accurate and complete
- Provide documentation more quickly and within timescales
- Provide immediate assistance with liability investigation
- Support quick decision making on liability
If you have any questions about these reforms, please contact us on 0161 406 6786.