A new streamlined claims process will see road crash victims
receive compensation much quicker following an accident.
It is hoped the new system will halve the time it takes to
settle a personal injury claim following a
road traffic accident - to nine months from two years.
The changes follow a campaign by The Association of British Insurers
for a simpler, more cost-effective system.
The new regime, announced by the Ministry of Justice in
September last year, will apply to all motor personal injury claims
valued at between £1,000 and £10,000, the equivalent of nearly 80%
of all claims.
It sets out strict time frames within which each stages of the
compensation process must be completed. For example, an insurer
must decide on liability within 15 working days of being notified
of a claim.
It will also reduce costs by setting a fixed legal cost for each
stage, in a bid to reduce the current legal bills which add around
10% to all motor insurance premiums.
The use of standardised electronic claim forms will also reduce
duplication and enable decisions to be made more quickly.