Fixed stages & costs with set deadlines to be introduced
A new fast-track compensation procedure for people injured in road accidents is being introduced by the Ministry of Justice (MoJ).
The new scheme introduces fixed stages and costs with set deadlines for both claimants and defendants’ solicitors. It applies to claims valued between £1,000 and £10,000, which form the vast majority of claims, and is due to come into effect on 30 April 2010.
It will be accompanied by a new online portal which will allow solicitors to share information quickly and securely, at www.rtapiclaimsprocess.org.uk.
The fixed costs were agreed by solicitors’ bodies following a mediation process brokered by the Civil Justice Council.
Denise Kitchener, chief executive of the Association of Personal Injury Lawyers, says: “We fought long and hard under the direction of the MoJ to make sure the individual needs of injured people remain paramount in the new process, regardless of the MoJ’s aim of streamlining the process.
“Our aim has always been to ensure a proper and thorough service is provided to injured people under the terms of the new system and, when it comes into force in April, we will monitor very closely to make sure claimants’ needs do remain at the centre of the system.”
The scheme is split into three stages. At stage one, the claimant solicitor completes the claim notification form and sends it to the insurer who must deny/admit liability within 15 days (or 30 days if it is the Motor Insurers’ Bureau). Fixed recoverable costs of £400 will be paid if liability is admitted, and a 12.5% success fee will be applied where a conditional fee agreement (CFA) is in place.
At stage two, if liability is admitted, the claimant obtains a medical report and the process continues with offers and negotiation of a settlement to a strict timetable. There is no fixed timetable for obtaining the medical report. The claimant solicitor must complete the settlement pack form within 15 business days of the report being confirmed as factually accurate. The insurer must reply within 15 business days, and there will be a further 20 business days for negotiations concerning any counter offer. Fixed recoverable costs of £800 and a 12.5% CFA uplift fee will apply. At stage three, if the parties cannot agree a settlement an application is made to court for a quantum hearing.
Claimant solicitors can recover costs of £250 for paper-based resolution and £500 for oral hearings. A 100% CFA success fee is applicable if the claim goes to trial. Damages and fixed costs must be paid within 10 days of any settlement.
