LEIG calls for Ministry of Justice rethink, 04 July 2007

Legal Expenses Insurance Group

News Release : 04 July 2007

LEIG calls for Ministry of Justice rethink

Speaking today at the Insurance Times conference Future of Claims Personal Injury Tony Baker, Director of the legal Expenses Insurance Group, called for the Ministry of Justice to rethink their proposals for further reform of the personal injury compensation system in the UK.

The Government is engaged in initiative overload on personal injury claims. They need to allow time for previous initiatives to work through before pressing for yet more change. The current proposals fail to safeguard the interests of claimants and could reduce access to justice and result in less and lower personal injury compensation.

The MoJ published a consultation paper Case track limits and the claims process for personal injury claims on 20 April and sought views by 13 July on major reforms to the system and process for delivering personal injury compensation.

The LEIGs response to the consultation paper calls for important changes including;

A rethink on proposals covering ATE premiums so as to protect claimants and enable a viable market to continue.

Meaningful sanctions for failure to meet the timetables proposed for deciding on liability and processing claims.

An allowance for referral fees in setting solicitor costs.

A pilot to test what happens in practice.

Ample time for the orderly introduction of any changes.

The full LEIG response is available on their website www.leig.org

-ENDS-

1. The Legal Expenses Insurance Group (LEIG) was formed in April 2006 by a number of leading legal expenses insurers and intermediaries. The aim of the Group is to work together to protect and advance the rights of claimants to justice and fair levels of compensation.

The full members are Albany Assistance Ltd, Angel Assistance Ltd, DAS Legal Expenses Insurance Company Ltd (80e Ltd and Amicus Legal Ltd), LAMP Group Limited, MSL Legal Expenses Ltd, Red Sands Insurance (Europe) Ltd, F and I Solutions Ltd and ULR Norwich.

Members represent in excess of eight million motor legal expense policyholders and over 16 million policyholders in general. It is estimated that members account for over half of the before the event (BTE) and after the event (ATE) legal expenses insurance market.

2. Copies of the full LEIG response to the consultation paper are available on the LEIG website (www.leig.org.uk) or on request from Tony Baker.

3. Enquires to: Tony Baker (Director, LEIG):

Tony Baker

Tel: 01920 465000

Mobile: 07725 462528

Email: thetonybaker@gmail.com

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