THE IMPACT OF THE NEW PROCESS FOR DEALING WITH ROAD ACCIDENT CLAIMS

April 29th, 2010 admin

Published in Truckstop News May 2010.

In this month’s issue Steven Hinchliffe of the specialist Personal Injury Compensation firm Hinchliffes Solicitors will consider “THE IMPACT OF THE NEW PROCESS FOR DEALING WITH ROAD ACCIDENT CLAIMS”

From 30 April 2010 there will be an entirely new process for dealing with road accident claims involving a personal injury. This has been forced through by the Government, acting under pressure from insurance companies, and it will affect all cases where the overall value of the claim is less than £10,000. In practice, this will include the overwhelming majority of road accident compensation claims. However, what are the implications for you – can you be sure that your case will be properly conducted by your solicitor and that you will receive the full amount of compensation you are entitled to?

One fact should be clear at the outset – insurance companies are driven by profit and if they can get away with paying you less compensation than you are entitled to, then they will do so. Be wary of their cosy advertisements and public relations statements in which they give the impression that you will be properly looked after. What they really want is your premium payment.

The new process is being hailed as a streamlined, cost effective way to handle these claims, but the legal costs payable by insurance companies to your solicitor are being significantly reduced. Under the current fixed costs arrangements for road accident claims the legal costs payable by the guilty party’s insurers are already at a level that barely covers some firms’ overheads. As a result of the further reductions some solicitors may feel they have little option but to charge you a sum from your compensation to make up the shortfall. This could mean that you would not keep all of your compensation. However, a well organised and efficient legal practice should still be able to offer a ‘no cost’ service whether you win or lose, with you keeping 100% of the compensation recovered.

Victims of road accidents are unlikely to be aware of the proposed changes, as they affect how the claims are handled. However, under the new process your solicitor is not required to send any of your medical records to the consultant who prepares a report on your injuries, and upon which the level of your compensation is based. How can the medical expert possibly provide a reliable opinion about your injuries if they are not fully aware of your medical history, including details of the treatment you received at hospital or from your GP immediately following the accident? Also, if you suffer from a long standing medical problem, eg with your back, and this is made worse by the accident, how can the expert assess what level of your current symptoms are due solely to the accident or to your pre existing condition. It is highly likely that the medical reports will contain legal clauses that will release the expert from any personal liability if it turns out that their diagnosis and prognosis for recovery are wrong because they were not provided with medical records. As your solicitor will rely on the medical report when placing a value on your claim, the scope for error is huge.

I firmly believe that solicitors who do not continue to supply the expert with a full medical history will not be acting in their client’s best interests and in some cases may actually be guilty of professional negligence. The chances of a claim being settled for less than it is truly worth are obvious. Therefore when choosing a solicitor to act for you consider asking them to confirm that they will send the expert full medical records, and if they will not do so perhaps you should instruct another firm.

One of the main aims of the new process is for claims to be settled faster. Undoubtedly, there are some solicitors who are slow and have held up the resolution of their clients’ cases, but equally so many claims are simply not appropriate for a quick settlement. For example, the medical prognosis may be unclear and the client needs rehabilitation treatment to help them return to their pre-accident condition. It may be necessary to obtain a second medical report after the treatment is finished, or to get a report from a different type of expert dealing with specific symptoms or consequences of the accident. All of the work that the solicitor must do in preparing the claim is covered by the new fixed fees and in effect they will not be paid for this extra work. Therefore, can you be sure that they will be willing and able to do it? I have little doubt that the majority of solicitors will continue to act professionally and do whatever is necessary to ensure that their client recovers full compensation, but there are some who will be prepared to cut corners and do as little work as possible. Some critics suggest that this is already happening under the existing fixed costs scheme, and the situation is unlikely to get any better.

From the tone of this article you may guess that I am far from happy with the new process, and I am not alone in this view. Bodies representing the interests of innocent victims of accidents, such as The Association of Personal Injury Lawyers, The Motor Accident Solicitors Society and the Unions, have all expressed concerns, but we will have to wait and see whether our fears are justified. Despite this, insurance companies are delighted with the planned changes and which I think speaks volumes!

PERSONAL INJURY CLAIM SOLICITORS:-

If you have suffered any form of accident or contracted an industrial disease contact personal injury claims specialists Hinchliffes Solicitors for immediate legal advice, to find out if you are entitled to make a claim for personal injury compensation. All cases are conducted on a Free No Win No Fee claims basis, where you keep 100% of the compensation recovered.

Call now on 0800 138 1348 to speak direct to one of our specialist claims solicitors or go to our Start Your Claim Now page to submit details of your accident compensation claim online.