Road Accident Compensation Claims process gets streamlined by the Ministry of Justice

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A system for the fast-track of claims arising from road traffic accidents has been approved by the Ministry of Justice and is intended to be in place by April 2010.

The "streamlining process" as it is known plans to impose greater time restrictions on the conduct of parties involved, to promote early settlements of road accident claims and less discordance during the course of a claim.

For the claimant’s side The Association of Personal Injury Lawyers, Motor Accident Solicitors Society, and the Law Society have been involved and for the Defendant’s side the Motor Insurers’ Bureau, Forum Of Insurance Lawyers and the Association of British Insurers were represented. All parties have consented to the process which includes fixed recoverable legal costs at intervals during the course of the road accident claim.

The success of the process is subject to the compliance of the parties and there is some doubt over whether the time limits are sustainable, given the potential impediments of having effective case management systems and resources that will be required.

If any of the time limits are missed, the road accident claim will automatically be taken out of the streamlining process and usual conduct and costs will resume.

Road Accident Claims which are valued at over £10,000, do not have liability admitted at the first stage of the process, where fraud is alleged, or where there is any contributory negligence, will also be automatically removed from the streamlining process.

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