Parliament considers MoJ reforms

The scheme, which applies to claims valued between £1,000 and £10,000, introduces fixed stages and costs with set deadlines for both claimants’ and defendants’ solicitors, according to how many stages a case has to go through before it is settled. The scheme is set to come into effect on 30 April 2010.

Justice Minister, Bridget Prentice, said: “People do not need any more stress after being involved in a road accident. This scheme will mean that everyone knows in advance what the costs will be and it will be simpler and quicker to complete a claim.

“The proposed scheme with the online technology allows solicitors to communicate more effectively and encourages early notification of claims, early admissions of liability and early settlements.

“Government and the industries involved have worked closely together to establish a scheme within which people can be confident that the professionals they are dealing with are resolving their conflicts as quickly, simply and cheaply possible.”

The new process is split into three stages:

• Stage 1 – the claimant solicitor completes the claim notification form and sends it to the insurer who may admit/deny liability;
  
• Stage 2 – if liability is admitted, the claimant obtains a medical report and the process continues with offers and negotiation of a settlement to a strict timetable;
  
• Stage 3 – where the parties cannot agree a settlement an application is made to court for a quantum hearing.