A collective of personal injury solicitors is planning a legal challenge against the Ministry of Justice over its new road traffic accident (RTA) claims process, the Gazette had learned.

The Accident Compensation Solicitors Group (ACSG) claims that fixed costs under the new process ‘have not been based on proper research as to the true cost of running claims up to £10,000’.

The ACSG says it has evidence that, under the existing fixed-costs regime, claims are being under-settled in areas where costs have not been upped since the scheme was introduced in October 2003.

The new RTA claims process, aimed at speeding up the settlement of claims between £1,000 and £10,000, is set to go live on 30 April.

ACSG chair Elaine Hughes said that the group has consulted counsel and will launch a fighting fund for solicitors who want to join the action.

She said: ‘With the continued restrictions in legal expenses insurance to panel solicitor firms prior to issue of court proceedings, which continues to go unchallenged, insurers would be delighted if they could pay off all accident claimants with the usual £1,200 to £1,400 offer within four months of the accident.’

She said that the MoJ has so far declined to meet with the ACSG to discuss its concerns.

A MoJ spokesman said it had not heard from ACSG about a proposed challenge but was ‘fully satisfied that there has been appropriate engagement with relevant stakeholders in the development of both the new process [for RTA] and the fixed costs associated with that process’.

Last week, shadow justice secretary Henry Bellingham said that a Conservative government would re-evaluate lawyers’ fees under the new system in April 2011, although it is ‘unlikely’ it would scrap the new system altogether. Bellingham cited concerns among some personal injury lawyers of inadequate consultation by the present government.