By Rachel Rothwell


A fierce row erupted this week as personal injury lawyers accused the insurance lobby of launching a 'cheap attack' on solicitors in the run-up to the publication of the government's proposals on reform of the claims process.



The Association of British Insurers (ABI) launched a report criticising lawyers' costs in what solicitors claimed was a cynical attempt to flex its muscles and influence the outcome of the proposals.



The ABI said the current system was 'riddled' with high legal costs which were 'disproportionate to the work involved'. The report referred to 'spiralling' costs in small claims.



David Marshall, personal injury specialist and managing partner at London firm Anthony Gold, said: 'The ABI's comments are yet another throw away, cheap attack on lawyers.



'The ABI's own study showed that the cost of lawyers has remained constant for the past ten years, so it cannot be said to be spiralling. These sort of comments are unhelpful. The ABI is trying to influence the debate instead of coming up with a solution.'



Colin Ettinger, personal injury partner at national firm Irwin Mitchell, said: 'I am sceptical about [the ABI's] motives. Insurers only want to bring down their costs and they know that without lawyers around they will have to pay out less.



'It's populist in its approach. Lawyers are not popular, and they think that if they play on that, it will strike a chord with people. But if costs are too high, insurers have only got themselves to blame by taking up so many unnecessary points with lawyers.'



Andrew Twambley, senior partner at personal injury firm Amelans, said: 'The only delays in the system are caused by insurers denying liability and waiting three months before even looking at a claim.



'The ABI cites ridiculous figures for the length of time motor accidents take. If my firm took two or three years to settle a motor claim [which is the average time cited by the ABI] I'd have gone bust 12 months ago... This is a self-serving ABI document trying to chivvy the Ministry of Justice.'



Twambley pointed out that legal costs can be assessed by the court.



Association of Personal Injury Lawyers President Martin Bare said insurers could reduce costs by admitting liability early.



ABI spokesman Malcolm Tarling admitted there was 'certainly a degree of correlation between our comments and the fact that the consultation is due to come out shortly.' He added: 'We are not attacking lawyers. But we are attacking a system that is too slow and too cumbersome... We would disagree that insurers are responsible for delays. Legal costs are disproportionate for the work that is involved. We are willing to change our ways, and would like to think that the legal profession is able to do so as well.'



A Ministry of Justice spokeswoman said its reforms would be published 'by the end of March or as soon as possible thereafter.'