MINISTRY OF JUSTICE News Release (095/08) issued by The Government News Network on 21 July 2008

A new claims process which will apply to road traffic accident personal injury claims is to be established, the Government said today.

Road traffic accident cases comprise approximately 75% of personal injury claims. This new streamlined procedure provides for early notification of claims valued between £1,000 and £10,000.

The new process promotes early admissions of liability and early settlements, and removes duplication of work from the process. It also introduces fixed time periods and fixed recoverable costs.The details come in response to the consultation paper, "Case track limits and the claims process for personal injury claims", published today. It summarises the responses received to the consultation paper and sets out the next steps.

The Government has also concluded that there should be no change to the small claims limits, including those for personal injury and housing disrepair claims, and that the fast track limit should be increased to £25,000.

Bridget Prentice MP, Minister for Civil Justice, said:

"If you have been injured in a traffic accident, you want any claim resolved as quickly as possible. This new process encourages people to come to a quick settlement and to resolve any issues without a lengthy court process.

"The Government remains of the view that increasing the small claims limits would deny claimants access to appropriate legal advice to assist them with their claims. But increasing the fast track limit will provide greater flexibility for the courts to manage cases in the most efficient way."