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Faster compensation for people injured in road accidents

SOME half a million people injured in road accidents will receive quicker compensation.

A new streamlined compensation process started on 30 April, 2010.

It will, says the Association of British Insurers (ABI) cut the average time taken to settle a personal injury claim following a road accident from two years to no more than nine months.

The new process applies to claims occurring after 30 April.

The changes, announced by The Ministry of Justice last September, will apply to motor personal injury claims valued between L1,000 to L10,000 – almost 80% of all motor personal injury claims.

The changes involve three stages for each claim: collation of information to submit the claim; the claimant representative gathering evidence for the claim; and a final stage if no agreement can be reached on the claim value.

How the new process works

Challenging time limits for insurers and legal representatives will ensure speedy progress of claims. For example, an insurer must decide on liability within 15 working days of being notified of the claim.

Standardised claim forms will reduce duplication of information.

Legal costs will be fixed which will reduce the current legal bills that are adding an extra 10% to motor premiums paid by all motorists.

Nick Starling, the ABI’s director of general insurance and health, said: “These changes will not only mean quicker compensation for many, but will also reduce the level of legal costs that all motorists ultimately end up paying for through their motor premiums. We expect that these changes will be the start of wider ranging reforms to ensure that more claimants benefit from a simpler and speedier compensation process, and we would like to see this new process extended to cover employers’ liability insurance claims.”

Mark Daynes, head motor practice at Marsh’s, a professional services firm, added: “Organisations will be better able to control both the direct and indirect costs of claims by reducing third party and their own internal administration costs.

“Organisations which operate motor vehicles should review their claims management procedures to ensure they comply with the new process. This review may also enable organisations to identify and pursue uninsured loss claims against responsible third parties, which will have a direct, positive impact on cashflow.”

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30 November 1999

SOME half a million people injured in road accidents will receive quicker compensation.

A new streamlined compensation process started on 30 April, 2010.

It will, says the Association of British Insurers (ABI) cut the average time taken to settle a personal injury claim following a road accident from two years to no more than nine months.

The new process applies to claims occurring after 30 April.

The changes, announced by The Ministry of Justice last September, will apply to motor personal injury claims valued between £1,000 to £10,000 – almost 80% of all motor personal injury claims.

The changes involve three stages for each claim: collation of information to submit the claim; the claimant representative gathering evidence for the claim; and a final stage if no agreement can be reached on the claim value.

How the new process works

Challenging time limits for insurers and legal representatives will ensure speedy progress of claims. For example, an insurer must decide on liability within 15 working days of being notified of the claim.

Standardised claim forms will reduce duplication of information.

Legal costs will be fixed which will reduce the current legal bills that are adding an extra 10% to motor premiums paid by all motorists.

Nick Starling, the ABI’s director of general insurance and health, said: “These changes will not only mean quicker compensation for many, but will also reduce the level of legal costs that all motorists ultimately end up paying for through their motor premiums. We expect that these changes will be the start of wider ranging reforms to ensure that more claimants benefit from a simpler and speedier compensation process, and we would like to see this new process extended to cover employers’ liability insurance claims.”

Mark Daynes, head motor practice at Marsh’s, a professional services firm, added: “Organisations will be better able to control both the direct and indirect costs of claims by reducing third party and their own internal administration costs.

“Organisations which operate motor vehicles should review their claims management procedures to ensure they comply with the new process. This review may also enable organisations to identify and pursue uninsured loss claims against responsible third parties, which will have a direct, positive impact on cashflow.”

Potential to reduce insurance premiums

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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