On Monday, a new scheme was put before Parliament which would speed up the claims process for people injured in road traffic accidents.
Under the new guidelines, preset payouts would be determined depending on the severity of the accident and costs and deadlines for the solicitors of both parties would be introduced.
However, only compensation sums between £1,000 and £10,000 are set the be covered by the scheme. Claims of this value make up the vast majority of road accident compensation payouts.
The new scheme is being introduced in an attempt to streamline and speed up the claims process, and was proposed by industry figures with the support of the Ministry of Justice.
It is set to become active on 30th April 2010.
According to Justice Minister Bridget Prentice the new system will be faster, thereby reducing the stress for those injured in an accident.
The measures were first announced to the public in September last year, and were welcomed by the ABI’s director general of insurance and health, Nick Starling.
