LEIG response to Lord Justice Jackson, 03 August 2009
Legal Expenses Insurance Group
News Release : 03 August 2009
LEIG publishes its response to Lord Justice Jackson review on civil litigation costs and calls for no significant changes to current arrangements for obtaining compensation.
Tony Baker, Director of the LEIG, commented:
No case has been made for any radical changes to the current arrangements that would be consistent with maintaining access to justice for claimants and achieve significant costs savings or improvements to existing processes or arrangements.
The LEIG was disappointed that such a major review was being undertaken so shortly after many of the issues had already been fully considered in the MoJ consultation paper Case Track Limits and the Claim Process for Personal Injury Claims. The Governments response to this consultation was only announced in July 2008 and action resulting is still under discussion for introduction in 2010.
Tony Baker added:
A robust compensation scheme has been developed and continues to evolve. Changing arrangements in one area could be highly detrimental to the overall system and reduce access to justice and fair compensation to claimants. After the event insurance is central to current arrangements and it is essential that premiums must continue to be recoverable and market forces left to determine competitive rates.
In January 2009 the Master of the Rolls, Sir Anthony Clarke, appointed Lord Justice Jackson to lead a fundamental review of the rules and principles governing the costs of civil litigation and to make recommendations in order to promote access to justice at proportionate cost. The review's findings are due to be presented to Sir Anthony in December.
Sir Rupert Jackson published his on 8 May and sought responses by end July 2009.
Key points in the LEIG response are:
ATE premiums must continue to be recoverable: Removing or restricting the recoverability of ATE premiums would be a severely retrograde step as it would significantly reduce access to justice.
CFAs and ATE must remain as key elements in compensation arrangements: the use of Conditional Fee Agreements and ATE policies facilitate access to justice. Costs Judges are well placed and well able to undertake a thorough investigation of the reasonableness, or otherwise, of the claimed success fee and/or the insurance premium incurred. This is the best way for such success fees and premiums to develop, where possible, consistent patterns commensurate with the risks in various categories of case.
No change to the small claims limit: The limit should remain at £1,000. The personal injury limit has not increased since 1991 and this is for very good reasons. These remain even more valid today following the withdrawal of legal aid, the compensation reforms introduced and in train for the next year or two and the MoJ decision against an increase in July 2008.
Defendant insurers must improve administration and efficiency: the underlying problem of the current compensation regime is the poor efficiency of defendant insurers and their inability to settle claims quickly and fairly. They have the solutions in their hands and unfortunately many fail to deliver at even the most basic level.
-ENDS -
Notes for Editors
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 following companies have to date joined the LEIG:
Albany
Angel assistance
ARAG
DAS
Elite Insurance Company
Financial and Legal
IGI Insurance
LAMP
MSL
Temple Legal Protection
Templeton Insurance
ULR Norwich
It is estimated that members represent in excess of eight million motor legal expense policyholders and over 16 million policyholders in general.
2. Tony Bakers contact details are:
Tony Baker
Tel: 01920 465000
Mobile: 07725 462528
Email: thetonybaker@gmail.com
A jpeg picture is available on request.
3. Website: www.leig.org
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