Daily Insurance Industry News
 
 
Daily Insurance Industry News
Friday 27th of April 2018
April 29, 2010

Insurers cautious on RTA personal injury claim reforms

by Gill Montia

Story link: Insurers cautious on RTA personal injury claim reforms

Research regarding a new process introduced by the Ministry of Justice (MoJ) for personal injury road traffic accident claims has produced some significant results.

According to Berrymans Lace Mawer LLP (BLM), a survey of insurance industry representatives found only 53% in favour of the reform, which comes into force tomorrow (30th April) for claims of between £1,000 and £10,000.

Forty-five per cent of those questioned were undecided about the value of the new system and 63% were unsure whether a newly developed portal would be an effective means of processing such claims, with only 28% expressing confident in the system.

However, 64% of those questioned believed the reform would succeed in its objectives of cutting costs and getting damages to claimants faster.

In terms of readiness, 60% of survey respondents were not completely ready for implementation; 15% had not commenced training and only 21% were completely up to the mark.

BLM reminds insurers that assessing the time limits proposed for each stage of the process is important, given that the MoJ has imposed time restrictions at a number of key points throughout, and failure to comply may result in a claim exiting the process.

Insurers are being given five business days from receipt of the court proceedings pack to check its accuracy, provide brief comments and return it electronically.

Finally, BLM’s survey asked respondents about the need for fraud screening when using the new process.

Thirty-two per cent believed they would need to spend more time detecting fraud and 27% were not expect any change, with the remainder (41%) unsure at this stage.

 

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