Road Traffic Collision Claim Process Reform
Following the Ministry of Justices’ consultation process on personal injury claim reform, the Government has announced significant changes in the RTC Personal Injury claims process for claims with a value between £1,000.00 and £10,000.00. In choosing RTC claims (the Government declined to alter the claims process for EL and PL claims) it was cognisant that such cases constitute approximately 70% to 75% of all personal injury claims.
The detail of much of the process is yet to be decided and the following constitutes a broad overview of the process. Readers are encouraged to read and review the MOJ’s response paper which can be accessed at: www.justice.gov.uk/docs/case-track-limits-response.pdf
Claims will be initiated via a Claim Notification Form which is to be completed by the Claimant’s Solicitor and must be submitted to the proposed Defendant within 5 working days of completion. Where the Claimant is not represented they will utilise a different form. The forms have yet to be drafted but will be based on the appendices to the original consultation document.
The Defendant, its Insurers or Handlers will have 15 working days in which to provide its decision on liability. In order to prevent routine requests for extensions the Government has concluded that there should be no extensions of the 15 working day time limit.
Should liability be admitted then the Claimant is required to obtain a medical report and, having checked it, send it to the Defendant as part of a settlement pack which will include a Schedule of Special Damages together with relevant documents and the Claimant’s own offer. On receipt of a settlement pack the Defendant has a further 15 working days to consider and either accept or reject the Claimant’s offer. The Defendant can of course at any time make its own offer. Where a counter offer is made an allowance of a further 20 working days is provided for consideration and negotiation. Where a settlement cannot be agreed or either party fails to act within the time scales then an Application can be made for a Quantum Hearing.
The Government has rejected its initial proposal that such Hearings would be based on paper evidence alone. There will now be an Assessment Hearing, however the same will primarily be based on the settlement pack.
The Government is to undertake further work, in consultation with Stakeholders, on the preparation of standardised special damages.
Should liability be admitted but the Defendant alleges contributory negligence, then the claim will leave the new process and no longer be covered by it. The claim will also leave the process if there are any issues of causation.
Where liability cannot be admitted or is denied the claim will not fall within the new claims process. The government has indicated it will work with Stakeholders to consider the inter face between the new claims process and current pre-action protocols.
In denying a claim the Defendant should endeavour to narrow any issues as far as they are able.
The Government has concluded that where claims fall within the new process only fixed costs will be recoverable. However, no detail is given regarding the extent of those costs with the matter being passed to the Advisory Committee on civil costs to advise the Government.
The amended CPR provisions are now awaited together with commencement date.
Simon Evans