The Ministry of Justice must wish it had never begun reforming the personal injury (PI) claims process. It agonised for a year before announcing the results of its 2007 consultation and then watered down its new process so much that it barely seems worth all the bother.
A system for all PI claims (except clinical negligence) valued up to £25,000 became one for road traffic accidents valued up to £10,000 – for which a fixed-fees scheme already exists, lest we forget. Plans to restrict after-the-event insurance and beef up part 36 provisions were also scrapped.
What is left will benefit claimant lawyers to the extent that insurers will have to respond on liability within 15 days. Who will claim victory over the level of fixed fees remains to be seen – talks to determine the process have been going on for months, so one can only imagine the battle that will be waged over the level of fee-earner, amount of time and fee to be applied to each stage of it.
The decision to throw the hospital pass of breaking the deadlock to the Civil Justice Council vindicates those who questioned why the ministry froze the council out at the start, given its track record of brokering deals on PI costs in recent years. But this mediation will test even the council’s powers to bring the warring sides together.
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