ABI Proposals

The A.B.I.'s (Association of British Insurers) proposals for an increase in the Small Claims Limit and a simpler, faster, compensation process have been "thrown into disarray" following the near collapse of a similar scheme in Ireland says Mike Sexton, head of Personal Injury at E.A.D. Solicitors in Liverpool.

Sexton, who has long been against proposals to raise the Small Claims Limit as he believes that it would disadvantage the Claimant, points to statistics from the Personal Injuries Assessment Board (P.I.A.B.) in Ireland, the body set up to eliminate Court proceedings, showing that it is now making awards in just 1 in 8 personal injury claims.

The Irish State Service set up to speed up Personal Injury claims and slash legal costs is being abandoned by thousands fed up waiting for their cases to be dealt with.

The Government appointed P.I.A.B. is being de-railed by Claimants who are taking their claims back to their own Solicitors.

"We must learn lessons from Ireland and put the proposals to raise the Small Claims Limit where they belong - in the bin", says Sexton.

"The P.I.A.B. in Ireland was set up to allegedly reduce the costs of compensation claims by eliminating the need for claimants to instruct lawyers - as is being proposed here.

"Irish Solicitors opposed the proposals arguing that they were fundamentally flawed, but the powerful Insurance Lobby won the day. We must not let that happen here as it has failed miserably and more than 90% of claims in Ireland are now being lodged by Solicitors, albeit the claimant will not be awarded his legal costs.

"Notwithstanding this, Claimants would rather pay their own legal costs to ensure a fair and just settlement. If ever there was a persuasive argument against the A.B.I.'s proposals, this is it".

In the first comprehensive insight into the P.I.A.B. the Board has revealed it is facing a massive back log of Personal Injury claims.

Since 2004 the Board has assessed just 4400 claims out of a total 36000. Further, 40% of claims processed by the Board were rejected by either the Claimant or Insurance Companies.

"The A.B.I. says that their proposals will lead to a simpler, faster, compensation process. The Irish example shows this is nonsense," says Sexton.

Austin Mitchell M.P. has laid down an early day motion in the House of Commons opposing any increase in the Small Claims Limit for Personal Injury cases.

He believes that such an increase would inevitably result in injustice to many accident victims who, without legal help, could not realistically hope to be a match for legally represented Insurance Companies.

Austin Mitchell believes that the Insurance Companies approach to the Defence of claims would become even more dogged, and even deliberately unfair, if insurers knew they only had to face an unrepresented Claimant who is unable to value their own entitlement to damages, let alone to assemble evidence or negotiate their way through a minefield of the Law and Court proceedings.

Austin Mitchell believes that the average constituent is unlikely even to try to bring a claim if they are unrepresented.

The motion had been signed by 47 M.P.'s at the start of the Summer recess and this figure has now risen to 61. The motion will remain open for signatures until the end of the 2005-2006 session end in November.

Michael Sexton exhorts all M.P.'s who have the interests of the ordinary citizen at heart to support this motion.