Crash victims should receive quicker payouts
The Association of British Insurers (ABI) has stated that people injured in road accidents should receive their compensation claims much quicker due to a new system.
The group revealed that a new scheme, which comes into force on Friday, has been launched and will help to streamline the claims process.
The reform aims to reduce the amount of time it takes to settle a personal injury case following a crash from two years to no more than a nine month period.
The ABI believes that around half a million people a year could benefit from the move and stated that they have been campaigning for a faster, easier and more cost-effective system for a while.
The Ministry of Justice announced the new practice in September 2009 and it will apply to all motor accident claims valued at between £1,000 and £10,000, the equivalent of nearly 80% of all cases.
It sets out strict time frames within which each stages of the compensation process must be completed. For example, an insurer must decide on liability within 15 working days of being notified of a claim.
The scheme will also help to reduce costs by setting a fixed legal cost for each stage, in a bid to lower the current legal bills which add around 10% to all motor insurance premiums.
The use of standardised electronic claim forms will also reduce duplication and enable decisions to be made more quickly.
Nick Starling, the ABI's director of general insurance and health, stated: “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.”
Disabled man will not receive compensation after crash
In similar news, it has emerged that a brain damaged man who was knocked down by a car when he was 12-years-old, will not receive compensation.
The now 23-year-old man was hit by a Renault Megane hire car as he crossed Tollington Road, Holloway, at around 4pm on New Year’s eve 1998.
He had just been ice skating when he was knocked to the kerb as he crossed the four lane one-way street. He suffered a fractured skull and severe brain damage due to the incident and is now unable to work or care for himself.
However, Judge Sir Charles Gray dismissed the claim and stated that the driver was not fault and the accident was unavoidable.
The victim’s mother stated: “The judge made a big point about the lack of police evidence. The police lost all the casework and they didn't know where the car was that they impounded on the day of the accident.”
Updated on 5/6/2010