Download Lord Jackson Reforms What it means to the customer

Lord Jackson Reforms
What it means to the customer
Introduction
The “Jackson Reforms” encompass two significant changes in the way in
which personal injury claims are dealt with on both a pre and post litigated basis.
The first tier of the Reforms was implemented on the 1st April 2013 and
concerns the revision of civil litigation costs.
The second tier of the Reforms saw the extension of the Ministry of Justice
Claims Portal scheme. From the 1st August 2013 the portal was extended to
include the vast majority of Employers Liability and Public Liability Personal Injury claims. In combination, it is hoped that the above will result in a significant
reduction of legal costs associated with bringing claims for personal injury as
well as making the claims system a more efficient and expeditious process.
Expansion of the Ministry of Justice Claims Portal - Effective 1 August 2013
This element of the Jackson Reforms sees a significant sea change in the
way in which EL and PL personal injury claims are processed. These claims
will, for the first time, be processed via an online claims portal, the portal operating
in conjunction with fixed fee costs if the claim remains within the portal and
predictive costs for cases which fall out of the portal.
The main headlines are:
n EL and PL injury claims will now be processed via an online electronic portal which will enable the claimant’s Solicitors to notify details of any claim directly
to the defendants insurers (if they are known). The portal will encompass all personal injury claims valued between £1,000 and £25,000, subject to a few exceptions; one of these being EL disease claims with multi defendants.
n The introduction of low, fixed costs which are payable to claimant’s Solicitors
if the case remained in the portal.
n
The introduction of new predictive costs for cases worth between £1,000 and £25,000 that fall out of the portal. Predictive costs for cases that fall out of the portal can be up to 6 times more expensive than the fixed costs that would have been payable if the matter remained in the portal.
n
The introduction of a significantly curtailed claims process which now
necessitates an acknowledgement of the claim within 24 hours (currently 21 days) and a reduction in the claims investigation from 3 months down to 30 working days for EL cases and 40 working days for PL cases. Failure to comply with the stated time period will result in the claim dropping out of
the portal.
n Denials of liability and/or allegations of contributory negligence will result in the case dropping out of the portal.
What does this mean for the Customer?
Whilst attempts to curtail claimant’s costs are to be
welcomed, the significant reduction in notification/
claims investigation time limits will present significant
challenges. Moving forward, customers should:
Ensure that all relevant accident documentation (to
include earnings details if an EL case) is immediately
made available to their Insurers to afford them an
opportunity to properly investigate and consider
claims within the prescribed time limit.
Respond promptly to any request for information/
assistance from the Insurer.
Increase notifications of pre claim incidents which may
ultimately result in a claim being made at some stage
in the future. This will enable Insurers, if they wish, to
carry out early investigations resulting in them being
better placed to respond to a claim (if made) within
the prescribed time limit.
Portal Process
Cases remaining within the portal will go through a
3 stage handling process: Notification Valuation - Hearing.
Stage 1 Notification
Claim notifications must be acknowledged within
24 hours.
Liability must be admitted within the prescribed
portal time limits, namely 30 working days for EL
cases and 40 working day for PL cases.
Stage 2 Valuation
If liability is admitted the claimant must obtain a
medical report and then send it to the defendant
with details of the claimed special damages and
a proposed settlement figure. This batch of
documentation is known as the “settlement pack”.
Insurers will have 15 days to accept or reject the
offer. If the offer is rejected, a counter offer must
be made within a further 20 days.
Stage 3 Hearing
If the quantum of the case is not agreed then either
party may seek a hearing. The claimant’s Solicitor
will file a claim form and medical report with the
Court and both parties will submit their best offers
of claim in sealed envelopes. The Court may decide
to resolve the dispute by way of either a “paper
hearing” or an “oral hearing”.
Ecclesiastical Insurance Office plc (EIO) Reg. No. 24869. Registered in England at Beaufort House, Brunswick Road, Gloucester, GL1 1JZ, UK. EIO is authorised by the Prudential
Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
PD2055 1 03/14