Reforming System of Compensation

If you were going to reform our system of compensation, where would you start? The Civil Justice Council [CJC] have, in their wisdom, decided to start at the end of the process, namely with costs. Rather than costs being determined by the amount of work the Claimant has to do to win their case, the CJC want to impose fixed costs on the vast majority of claims. Needless to say those fixed costs will be far far lower than the present levels, which are themselves hardly generous, yet with no reduction in the work the Claimant is required to do.

Insurers must be rubbing their hands with glee – they clearly have the ear of government at the moment so that their interests, which are purely financial, are being allowed to override all other considerations in what is, after all, supposed to be a system administering justice, not a system for increasing insurer’s profits.

It is hardly rocket science to understand that the views of all parties involved in the claims process should be taken into account, yet at the moment the Claimant’s representatives are being largely ignored. Agendas are being “fixed” so that the issues on which the CJC will even invite representation are so restricted as to frustrate Claimant’s interests. Consequently the largest Claimant’s representative organisation, the Association of Personal Injury Lawyers (APIL) has taken the unprecedented step of withdrawing from any negotiations or discussions with the CJC over the claims process. Insurers and, I fear, the Government / CJC will try and dress this up as unreasonable behaviour by an organisation who have not been allowed to get their own way but do not be fooled – the CJC are not interested in anything other than saving insurers money and if they think that, in so doing, they are helping Claimant’s interests then they are sorely mistaken.

The right way to have gone about this would have been to properly consult with all interested parties. If, after consultation, there was an identified need for change than that should be addressed at the beginning of the process, namely with the procedure the parties have to follow in order to bring a claim, not how much they will be paid at the end of the matter. Once the procedure is in place, then costs can follow.

Insurers are like the Terminator – they can’t be bargained with, they can’t be reasoned with, they don’t feel pity or remorse or fear and they absolutely will not stop. Unless the CJC realise this soon, it will be too late for Claimants and damage will have been done to innocent victim’s interests which may never be repaired. 

For more information please contact Neille Ryan, Partner specialising in Personal Injury and Industrial Disease compensation claims.