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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