Following constant campaigning by the Association of British Insurers, 80% of motor personal injury claimants injured in road traffic accidents will receive car insurance claim payouts within a period of nine months from the date the claim was notified. This news follows on from the announcement made back in September last year by the Ministry of Justice.
Up until now, it has not been uncommon for claims of this type to take two or more years which is both a drain on insurance company resources and also stressful for claimants. There is of course conditions attached namely that the new rules only apply to new claims made after the 30th April 2010. Secondly, only motor personal injury claims estimated to fall within the £1,000 to £10,000 valuation are eligible. Thirdly, there will be three defined stages for each claim including collation of information, the claimant representative gathering evidence for the claim and a final stage if required if no agreement is reached on the value of the claim settlement.
In addition to the speedier resolution of these claims it is hoped that legal costs will be now fixed, therefore, reducing current legal bills, which are estimated to be adding around 10% of the cost of car insurance premiums. This will no doubt come as very welcome news for motorists who are suffering high fuel prices and soaring insurance premiums during the recession.
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