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Well it seems perfectly sensible to me to prevent litigation where an ATE premium of £30,000 (and presumably legal costs of a similar amount) is required to recover damages of just £10,000.

The basic problem is the absurd amount charged by lawyers to engage in litigation. Since CFA's were introduced they've got used to racking up costs just for the sake of it and they've been getting away with it for far too long.

Some of the bills I've seen referred to in PI claims are extortionate - £90k for a £5,000 claim!

The greedy lawyers have finally killed the goose that laid their golden egg and as an insurance premium payer and a taxpayer I for one am very pleased.