Parliament considers 'quick and simple' compensation scheme for road traffic accidents

People claiming compensation after being injured in road accidents will be able to receive their compensation more quickly and simply under a new fast-track process put before Parliament today.

The scheme introduces fixed stages and costs with set deadlines for both claimants' and defendants' solicitors, according to how many stages a case has to go through before it is settled. It will apply to road traffic accident personal injury claims valued between £1,000 and £10,000, which in the past have formed the vast majority of claims.

The aim is a process which delivers fair compensation to the claimant as soon as possible at proportionate cost. The process will be made even quicker through a new industry led online portal which will allow solicitors to share information quickly, efficiently and securely.

The details of the new process have been developed by Ministry of Justice in consultation with stakeholders from both sides of the industry while the fixed costs were agreed by bodies representing claimants and defendants' solicitors following a mediation process overseen by the Civil Justice Council. The scheme is set to come into effect on 30 April 2010.

Justice Minister Bridget Prentice said:

'People do not need any more stress after being involved in a road accident. This scheme will mean that everyone knows in advance what the costs will be and it will be simpler and quicker to complete a claim.'

'The proposed scheme with the online technology allows solicitors to communicate more effectively and encourages early notification of claims, early admissions of liability and early settlements.

'Government and the industries involved have worked closely together to establish a scheme within which people can be confident that the professionals they are dealing with are resolving their conflicts as quickly, simply and cheaply possible.'

The new process is split into three stages:

• Stage 1 – the claimant solicitor completes the claim notification form and send it to the insurer who may admit/deny liability.
• Stage 2 – 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.
• Stage 3 – where the parties cannot agree a settlement an application is made to court for a quantum hearing.

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