Pictured above: Stuart Williams, director at Cowens
SC
Businesses are being advised to ensure that their lawyers and
insurers are up-to-date with the latest changes to insurance claims
handling procedures.
Changes introduced by the Ministry of Justice came into force at
the end of April this year, but broker and business continuity
specialists at Cowens Survival Capability warn that failure to
comply with the rules will result in unsuccessful claims.
Stuart Williams, a director at Cowens SC commented: "The
Ministry of Justice decided that lower cost motor personal injury
claims generally take too long to settle and that claimant lawyer
fees were too high and disproportionate to the level of
compensation.
"Therefore, the ministry introduced changes that apply to
third-party personal injury claims arising from road accidents
after April 2010 if the claim is between £1,000 and
£10,000, excluding vehicle damage and hire.
"The changes cover stringent timing of claims and responses and
if not adhered to, there will be a loss of potential damages. If
you're in business and you need the money to cover costs, then it's
vital your claim is handled correctly and efficiently."
The rules specify three different stages of making a claim, the
costs of making claims and they highlight the importance of making
sure that correct details are held on the Motor Insurance Database,
which is used to identify relevant insurers.
Stuart added: "If the details on the MID are wrong, then by the
time your insurer receives the third-party notification claims, it
may be too late to get the case handled correctly."