ABI says review of insurance claims procedure flawed

The Association of British Insurers has slammed the outcome of a government consultation into insurance claims, saying it will not help brokers, insurers or claimants.

The Ministry of Justice’s 68-page document, ‘Case track limits and the claims process for personal injury claims’ follows a consultation launched in April last year and records major industry players’ views on plans to speed up the process for such claims and make them less expensive to pursue.

It states: “The majority of respondents agreed that the small claims limit for personal injury claims should remain at £1000. A minority said they would prefer to see the limit increased. A very large majority of respondents agreed that the small claims limit for housing disrepair claims should also remain at the same level.

“An overwhelming majority of respondents agreed that the small claims limit for general claims should remain at £5000.

Malcolm Tarling, a spokeman for the ABI, said the trade body was “disappointed” with the results of the consultation. “We don’t think much of it,” he said. “They don’t go far enough. The whole system for personal injury claim is too slow and too complex.

“These proposals won’t help claimants. Insurers don’t benefit because they’re paying out a disproportionate amount in legal fees. And brokers are part of this system – they’re trying to advise clients dealing with claims that take too long to solve.”