New crash scheme to cut legal fees
Personal injury solicitors are facing a 53% reduction in fees after a new road traffic accident claims process was agreed by claimant groups and insurers.
The scheme, which will be introduced in April and which will apply to hundreds of thousands of cases worth between £1,000 and £10,000 where liability is admitted, will streamline the litigation process by imposing limits on the amount that can be paid to solicitors at each stage and an overall limit of £1,700.
Solicitors will be paid £400 for stage 1, where they complete a new notification form and send this to the insurer to be assessed for liability.
For stage 2, where liability is admitted and the process continues to a settlement within a strict timetable, solicitors will receive £800.
At stage 3, where no settlement is reached and the case goes to court, solicitors will be paid £250 for a paper hearing or £500 for an oral hearing.
John McQuater, president of the Association of Personal Injury Lawyers, said: "The fees are lower but there should be less work. Most importantly, solicitors should be able to deliver a quicker service to clients."