The Ministry of Justice (MoJ) has finally published the results of the consultation which took place almost a year ago regarding the future of the Personal Injury industry.

Following a detailed consultation, the original proposals have been considerably watered down in particular with ATE being protected and pretty much now endorsed by the Government. The proposal is that the small claims track will remain the same and the changes to claims processes will only apply to RTA claims under £10,000 in value.

Key points to note:

1. £1,000 small claims limit for PI and Housing Disrepair claims to remain
2. £5,000 non PI small claims limit also to stay the same
3. Fast Track upper limit to increase from £15,000 to £25,000
4. No changes to ATE market - policies to be permitted on all cases as at present
5. New PI claims process only to apply to RTA claims under £10,000 in value
6. Standard form to be used for submitting RTA claims to insurers within 5 working days of receipt of all information by the claimant's solicitor
7. Insurers to have fixed 15 working days to respond on liability with no extensions permitted
8. Admissions to relate to duty of care only and binding on insurer save for cases of fraud
9. Case leaves fixed costs regime if causation or contributory negligence issues raised
10. Fixed costs to be decided by Advisory Committee on Civil Costs set up by MoJ following consultation with stakeholders; there is no intention to ban referral fees
11. Assessment of General Damages to remain as at present
12. Standardising Special Damages to be investigated
13. More than one Medical Report would be permitted where more time needed for full prognosis but solicitor should not run up costs in the intervening period
14. District Judge to determine quantum where settlement not achieved by negotiation although, if both parties agree, quantum assessment could be done at paper hearing
15. Part 36 offers to remain but more emphasis on judicial discretion where unreasonably low offers had been made
16. Cases where liability is not admitted would fall outside the new regime and would continue as at present with further assessment of the process to be be considered at a later date

Click here to download the 'Response to Consultation' paper from the MoJ website