The system supports the RTA PI Claims reforms process for low value personal injury claims (£1,000 - £10,000) agreed by Claimant and Defendant stakeholders with the Ministry of Justice (MoJ) by providing a secure medium for the electronic transfer between Claimant Representatives and Defendant Insurer/Compensators of the information necessary to process claims by individuals for personal injury following a road traffic accident.
The system has been designed in partnership with Claimant and Defendant stakeholders to take account of the internal working practices of both, whilst remaining fully compliant with the agreed reform protocols. It manages the communications throughout the stages defined by the protocols, validates the data defined as mandatory is fully completed, monitors the agreed times and provides reminders to avoid these periods being exceeded.
Q: Why were the PI reforms introduced in April 2010?
A: The reforms were introduced to streamline the current compensation system by speeding up the process of establishing liability and finalising payment of low cost RTA injury claims. Claimant lawyers now submit agreed information and insurers/compensators responding within specific time periods.
Q: Do the reforms apply to all PI claims?
A: The new process does apply to low cost personal injury claims from accidents that occurred on and after 30 April 2010 in England and Wales valued between £1,000 - £10,000 in damages – the majority of all motor personal injury claims affecting in the region of 500,000 claimants.
Q: Will the majority of motor claims go through the process?
A: It is anticipated the majority of motor claims will fall into the category covered by the new process. It is too early to judge how many of these will fall out of the process due to liability disputes. The technology system has the capacity and scalability to deal with the anticipated volume of claims covered by the new process.
Q: How long did it take to resolve low value RTA claims and how much did it cost?
A: Previously, it took several months to establish liability if the insurer/compensator has to request further information. Additional work by either side increases both legal and insurer/compensator handling costs. Streamlining the flow of agreed information on both liability and quantum between parties reduces the operational costs experienced and will enable the insurer/compensator to agree settlement more quickly.
Q: How does the new process differ from the previous RTA PI claims procedure?
A: The new process requires the use of standardised information passed between claimant lawyers and insurers through a secure electronic Portal, within specific time frames, which enables key decisions to be communicated more quickly and reduces duplication.
Q: How is the new process structured?
A: There are two definitive key stages involved in the new process with an optional third stage in the event of disagreement on quantum:
Stage One: The claimant’s solicitor completes the claim notification form and sends it to the insurer, who may admit or deny liability within 15 working days. There is a £400 fixed fee.
Stage Two: Where liability is admitted, the claimant solicitor completes and sends a Settlement Pack to the insurer/compensator. The insurer/ compensator has 15 working days to accept or a further 20 working days to negotiate via counter offers. There is an £800 fixed fee attached to this stage.
Medical evidence is gathered between stages 1 & 2 – there is no set time as medical reports must reflect the claimant’s injuries and recovery.
Stage Three: Comes into effect only when the relevant parties cannot agree a settlement figure, the claim then proceeds to a quantum hearing. Fixed costs of £250 for a paper hearing or £500 for an oral hearing will be met and there is no time limit involved.
