19th / April / 2010

Attention all Romero Fleet clients

With effect from 30th April 2010 the Ministry of Justice reforms on Road Traffic Accident (RTA) claims handling processes will be implemented into UK Law. These reforms aim to radically reform and speed up the processes involved in handling personal injury claims following an RTA. These reforms will have an affect on insurers, lawyers and personal injury claims. If you adhere to the process, you Brokers but also you the insured.

The aims are designed to speed up the claims process and also minimise solicitors’ costs for straightforward claims which could also see a healthy reduction in your fleet claims experience.

Which claims qualify?

All injury claims valued at between £1000 and £10,000 (excluding vehicle damage and hire)

How does it work?

Stage 1
• Lawyer submits the claim to insurer via a website portal
• Insurers have 15 working days to respond on liability
• If a response is received and liability is not an issue, solicitors’ stage 1 costs are just £400

If the insurer fails to respond or if liability is disputed, the claim leaves the streamlined process and solicitors’ costs are no longer restricted.

Stage 2
• Lawyer submits medical report and all financial losses with supporting documents and makes an offer to settle
• Insurer has 15 days to respond
• If settlement is agreed without dispute, solicitors’ stage two costs are restricted to £800 plus a 12.5% success fee i.e. £900.

If settlement is not reached then the insurer is issued with a Stage 3 court pack and has 5 days to respond with their comments. The claim is then resolved by a Judge who considers the evidence at an oral hearing. Costs at Stage 3 will be much lower than legal fees and court costs outside this process.

How will it affect you?

The key here is to ensure that all your accidents are reported as soon as possible. If you are at fault for the incident, even if there is no damage to your own vehicle it is essential that the claim is reported immediately to Romero.

If you are at fault for the incident then just by reporting it early, any solicitors’ costs could be restricted to just £1300 if the claim stays within the above process. This may still seem like a lot but compared to the costs some solicitors’ are achieving outside this process this represents a substantial reduction.

It remains to be seen how successful insurers will be in keeping claims within the process and what cost savings can ultimately be achieved. However they cannot do it without your assistance. We are asking you, our client, to play your part in helping your insurer make early decisions on claims and in the long run potentially reduce your claims experience and fleet insurance costs.