The process

The new personal injury claims regulations come in to force from the end of April 2010 for road traffic accidents. The claims process has been divided into three stages with fixed costs for each.

Stage 1:

• Claims sent to the defendant’s insurance company or, where appropriate MIB using a standard Claims Notification Form (CNF) via a secure electronic system.
• Insurer to respond within 15 business days declaring liability is admitted or not.
• MIB will be allowed a longer response time of 30 days to accommodate the time it takes for the claim relating to an accident with an uninsured driver to be reported to the Bureau.

Fixed recoverable costs of £400 will apply to all claims where the insurer has admitted liability or admitted with contributory negligence for the claimants failure to wear a seatbelt.

Stage 2:

• Following admission of liability, the claimant’s solicitor to obtain a medical report and complete a predetermined settlement pack.
• The settlement pack and medical report are sent electronically to the insurer with any other documentation e.g. receipts.
• Insurer to accept offer or make counter offer within 15 business days of receipt of settlement pack.
• If a counter offer is made, another 20 days will be allowed for negotiation between parties.

Fixed recoverable costs of £800 will apply to all claims during Stage 2. This will attract a 12.5% success fee uplift (where applicable) where the case settles.

Stage 3:

• If quantum (settlement) has not been agreed after this period, a judge will either review the case papers or hear evidence to determine quantum..

Separate fees of £250 or £500 (paper hearings and oral hearings respectively) will be payable to claimant solicitors for Stage 3.