Successfully negotiating claims since 1867
The Jackson Review of civil litigation relating to low value injury claims came into force in April. Intended to bring better balance to the system the reforms represent a step change to the personal injuries legal framework. We have produced a summary of the changes that will have the biggest impact on your clients.
The aims of the reforms are to bring more balance to the civil litigation system by:
- Addressing the growing compensation culture
- Creating an environment where claims costs savings will feed into lower premiums
- Delivering lawyers costs that are more proportionate
The changes that will be more apparent to consumers are:
After the Event legal expense premiums will not be recoverable
After the Event insurance was the preferred method by which no-win no-fee solicitors were able to offer these services. It was used to underwrite their costs should the litigation they undertook on behalf of a consumer fail. Consumers are likely to see fewer firms offering no-win no-fee services – indeed many have already exited the market.
Banning referral fees
The payment of referral fees was endemic before the changes. In the new environment referral fees will no longer be legal.
Limits have also been placed on claims quantum, particularly with regard to injuries such as whiplash.
How will these changes affect your clients?
The most important change for claimants is the requirement that they provide fast and accurate claims notifications, including:
- Immediate notification of claims or intention to claim
- Immediate and on-going assistance with liability investigations
- A need to provide accurate and complete information
- Production of documentation within shorter timescales
The key objective of these reforms is to speed up claims settlements and reduce stress for the claimant. In the longer term all insurance buyers should benefit from reduced fraud and extraneous legal fees savings feed through to more competitive insurance premiums.