Public May Distrust Personal Injury Reforms

October 12, 2008 on 7:24 pm | By | In bluefreesky.com | Public May Distrust Personal Injury Reforms
A new survey has suggested that claimants are vehemently opposed to the governments proposed reforms of the personal injury claims process. The survey of over 1,000 claimants was undertaken by Thompsons Solicitors and it collated opinions on the proposal to fix the amount of costs a solicitor can be paid. Most respondents felt that this would reduce the time their lawyer would spend dealing with their case.

The changes will force law firms to make multimillion-pound investments in technology and people to meet new deadlines aimed at speeding up the system and driving down legal costs. Personal Injury Solicitors will suffer the biggest brunt of the changes.

The majority of the claimants in the survey said that it was important that people are made fully aware of their right to independent legal advice if they are injured in an accident that is not their fault.

The reforms could open up a whole new multimillion-pound market for services before litigation begins. Some insurers could look to subcontract claims to solicitors, who would investigate liability on their behalf.

Although organisations like the Association of British Insurers(ABI) are pressing for reform of the insurance claims market, we should take their zeal with a pinch of salt. For example, the ABI states that for personal injury claims of £1,000 to £25,000 claimants without legal representation receive on average £289 more and their claims are settled 95 days more quickly. Yet these figures are limited to a narrow range of £1,000 to £25,000.

Although this survey suggests the public may be concerned about the quality of service they receive face to face with their own solicitor, it does address one of the main problems that the government is trying to eradicate. When an insurance claim is made there are multiple parties involved, the claimant and the other party, there are third parties, the claimants insurers, the other party's insurers, and even a repairing garage and medical specialists. Insurers may appoint a claims management company and they, or the insurers, may appoint lawyers. The claimant may also seek legal representation themselves. Considering the amalgamation of parties with different interests, you can see why the MOJ wants to encourage greater transparency and simplicity in the process.

Unfortunately the process is not simple and even the aspiration to reduce timeframes may not appreciate the complications of the aftermath of an accident. Recommendations propose lawyers will have to notify insurers of claims much earlier and insurers will have just weeks to admit or dispute liability. At present, there are no timeframes and claimants can bring claims up to three years after the accident. It takes an average of three years to settle claims.