The government has published provisional statistics on injuries on public roads in Great Britain...
Three years ago new rules were introduced in relation to personal injury claims following road accidents valued at up to £10,000, which meant that the claimant’s lawyer would only be paid fixed costs of £1,200 where liability was admitted early by the insurer. From 1 April 2013, for all accident claims valued at up to £25,000, no more than £1,600 will be payable towards the claimant’s costs, where the insurer admits liability early. All these claims will be run through a web based electronic ‘portal’.
The problem with this is that the process of securing a proper award of compensation against a stubborn insurer is often something of a battle. A settlement of £25,000 would normally involve a serious injury such as a complex leg fracture with some permanent symptoms and without legal representation claimants would not know where to begin to recover what they are entitled to. If an insurer is arguing over the value, the claimant’s lawyer will need to gather evidence to prove the case, taking statements from colleagues and relatives, considering documents and medical reports and ensuring that subrogated claims of employers and medical insurers are not overlooked, so that the claimant is not exposed to a claim against them. It would be nice to think that the claimant and the insurer could pull in the same direction and settlement could be reached amicably and swiftly but the reality is that, most of the time, that quite simply doesn’t happen.
Where settlement is protracted, (and realistically, even where it isn’t), the costs of the claimant’s lawyer would reach £1,600 at a very early stage and the government and insurance industry know this. There will be absolutely no profit to the legal profession in dealing with these claims and the claimants are likely to be left to their own devices to get what they can from an insurance industry that is not known for its benevolence – that is of course if the claimant has access to a computer and can work out how to operate the claims portal.
The insurance industry certainly seems to have some sympathetic ears in government. Don’t be surprised if despite the inevitable saving insurers make, we see no drop in premiums.
For further information or advice relating to this or other personal injury/clinical negligence matters, contact David Greenhalgh on 01689 887806 or email him at david.greenhalgh@cwj.co.uk