A leaked letter from The Ministry of Justice [MoJ] details that the reform of the RTA claims process is to be delayed until April 2010. The MoJ denied that it had decided on a launch date but the letter set out the new timetable with the rules to form part of the amended Civil Procedure Rules due out in December this year with implementation the following April.

The MoJ letter gave the reason for the delay as being to allow more consultation with interested parties and to give lawyers and insurers more time to prepare. The Legal Expenses Insurance Group [LEIG] has contacted the MoJ to suggest that LEIG, which represents over 75% of the ATE market, be included in the discussions but to date the offer has not been accepted.

Speculation is now rife amongst the insurance community whether the reforms will take place at all. A general election must occur before May 2010 so it is becoming possible that the reforms will be lost altogether in the run up to the election.