The Forum of Insurance Lawyers has urged the government to extend the road traffic accident claims portal to £25,000 and to reduce fixed fees in the regime.
In response to the government’s Solving disputes in the county courts consultation which closed today, Foil argued that the limit for claims going through the portal should be raised to £25 000. It went on to warn lessons should be learned from last year’s introduction and that the extension should not be subject to an excessively tight timescale.
The government has indicated April 2012 as a date for introducing its reforms. Foil was also supportive of the portal being extended to EL/PL claims. The organisation also argued the current level of fixed fees in the system is too high and needs to be reduced.
While also calling for fixed fees to be introduced for all claims in the fast track, Foil urged that costs and fees be linked to the amount of work required on a claim rather than purely based on its value.
Foil has argued that reducing fixed fees and hourly rates would also lead to a beneficial reduction in the price of referral fees. Tim Oliver, Foil president, said: “Foil is supportive of measures to extend the portal, which has proved beneficial in cutting the timescale of claims, allowing claimants to receive compensation quicker and cutting the costs of a claim.
“Care however is needed in extending the system and this process should not be rushed. It is important the government also addresses costs in the system. The fixed fees involved in the current process are too high and need to be reduced. These fees help to fuel the referral fee market, recently subject to media controversy, and along with a reduction in hourly rates, our proposal would be a market mechanism by which to curb the referral fee market.”
Medico-Legal News Source: PostOnline
