Daily Insurance Industry News
Daily Insurance Industry News
Thursday 22nd of March 2018
March 25, 2008

ABI impatient on personal injury claim reforms

by Gill Montia

Story link: ABI impatient on personal injury claim reforms

UK insurance companies are urging the Government to reform the legal system that deals with personal injury claims.

According to the Association of British Insurers (ABI) legal costs in the current system are high, while settlement times can be lengthy.

The Government has already drawn up plans to improve the process and the ABI is keen to see them implemented, so that claims can be settled promptly.

Under the new proposals, lawyers would have five days after being contacted by a claimant in which to notify insurers of a potential claim.

Insurers would have 15 days in the case of a motor claim, and 30 days for a workplace or public liability claim, to decide whether or not they are going to settle.

Current ABI figures show that the average motor accident personal injury claim takes 730 days to settle, while workplace claims take up to three years.

Stephen Hadrill, director general of the ABI explains: “What tends to happen is that a person who has been injured goes to a lawyer who does a vast amount of research, often unnecessarily in our opinion, before putting the claim anywhere near the insurer.”

In 2007, there were 250,000 personal injury claims, of which, 80% were non-contentious.


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