Injury claim news

ABI welcomes change to fast track car accident claim process

The Association of British Insurers (ABI) has welcomed recent Government plans to extend the limit for fast track car accident claims from £10,000 to £25,000.

The change to the fast track process will mean that an extra 55,000 personal injury victims involved in road traffic accidents each year will receive their compensation faster than before.

As a result of the announcement, around 97% of personal injury claimants will be entitled to use the fast track process, which was set up in April 2010. The process has strict time restrictions to force insurers and legal representatives to act faster in establishing liability. There are also standardised claim forms and fixed legal costs in place with the fast track system.

The director of general insurance for ABI commented, "In less than two years evidence shows that this process is leading to the average pay-out time being more than halved and lower legal costs.

"The Government must now press on with its wide-ranging and long overdue reforms to civil litigation to ensure that steps such as reducing fixed legal costs lead to a more cost efficient compensation system."

Following the success of the fast track car accident claims process, the Government is also considering introducing a similar scheme for accident at work compensation claims.



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*Where replacement vehicle costs can be recovered from the insurance company of the person who caused the accident. Where this person is untraceable or uninsured, or where there is a dispute over liability, a replacement vehicle cannot be provided.