Despite widespread publicity about the proposed reforms to personal injury litigation it has now been confirmed that many of the changes will not take place.
The aim of the proposed reforms was to both reduce the costs for lower value personal injury claims and to make the handling of cases more efficient. Proposed reforms included increasing the fast track limited, introducing a streamlined claims process and fixing recoverable costs.
After a considerable delay the Government has now provided a response to the proposals. The outcome can be summarised as follows:
- Small claims limit to remain at £1,000 for injury claims and £5,000 for others
- Fast track limit to be increased from £15,000 to £25,000
- Streamlined claims process limited to motor claims under £10,000
- Fixed recoverable costs to apply to motor claims under £10,000 only.
It is disappointing - and arguably a missed opportunity - that the proposals have not been extended to employer and public liability claims. This would have been of considerable economic benefit to insurers.