'Streamlined' insurance launched

A streamlined compensation programme for people injured in road accidents has been introduced by the Government.

It is hoped that the process will reduce the amount of time it takes to settle a claim from a current average of two years to a maximum of nine months.

The new regime, announced by the Ministry of Justice last year, will apply to all motor personal injury claims valued between 1,000 and 10,000 pounds - the equivalent of nearly 80 per cent of all cases.

It sets out strict deadlines within which stages of the process must be completed, as well as introducing fixed legal costs and standardised electronic forms designed to eliminate duplication and enable decisions to be made more quickly.

The Association of British Insurers (ABI) estimates half a million people a year will benefit from the move.

Spokesman Nick Starling said: "These changes will not only mean quicker compensation for many, but will also reduce the level of legal costs that all motorists ultimately end up paying for through their motor premiums."

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