PI experts express concern over the “portal of doom”
Personal injury lawyers have slated new rules on road traffic accident claims (RTAs) as “nonsense” and unlikely to bring costs down.
Under the Ministry of Justice’s new RTA Claims Process, lawyers and insurers will exchange information through an electronic portal, designed to allow practitioners to share information quickly and securely (at www.rtapiclaimsprocess.org.uk).
Insurers will have 15 days in which to accept or deny liability (instead of the current time limit of 60–90 days). It is anticipated, by the Department of Justice, that the improved flow of information between both parties on liability and quantum will simplify the processes involved, reduce costs and lead to swifter settlement.
The process, which is divided into three stages, comes into effect at the end of the April. It applies to claims worth £1,000–£10,000, which account for about 500,000 cases each year.
A 100% success fee is applicable if the claim goes to trial. Damages and fixed costs must be paid within 10 days of any settlement.
Chairing NLJ’s personal injury newscast last week, Professor Dominic Regan of London’s City University, expressed scepticism that costs would reduce.
“If you look at a settlement of £2,000 the costs will actually be the same as now. It will cost the insurer more if the settlement is below £2,000!”
Andrew Twambley, senior partner, Amelans, also taking part in the newscast described the 80 pages of rules as “tinkering” and expressed doubt about the ability/desire of insurers to act in the spirit of the new procedures.
“They wouldn’t say it on the record but I’m sure there are very few insurers out there that want to get involved in this, and I am sure they will do all they can to extricate themselves from it.
“If you read the number of procedures set out in the rules, it becomes evident that there are so many places that insurers bound to fail to comply,” he said.
“I anticipate that 90% of the RTAs that are going to be taken on are never going to get to stage three.”
Twambley added: “The most ridiculous thing about this new system is going to be the ‘portal of doom’. Is this portal going to stand up at the end of the first day? No, it is going to collapse.”
Regan added: “It is ludicrous that a ‘simplified’ process has generated 80 pages of rules, practice directions and forms.”
In his final report, Lord Justice Jackson urged implementation of the new claims process but recommended that it be monitored to ensure any cost savings were not negated by satellite litigation or avoidance behaviour.
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