Government proposals on reform of the civil litigation system could lead to cheaper insurance for consumers, the Association of British Insurers (ABI) has claimed.
The trade body for the insurance industry has been campaigning for the current system to be reformed and has urged the Government to tackle the high legal costs involved in settling personal injury claims. These costs, it says, have been one of the key causes of the rise in car insurance prices in recent years. Figures from the AA show that the cost of car insurance rose 33 per cent last year and looks likely to go up by another 20 per cent this year.
Justice secretary Kenneth Clarke this week launched a consultation on reforms. Proposals include successful claimants in no win, no fee cases having to pay lawyers’ fees from their payout and for those lawyers’ fees to be capped. A range of other measures are outlined in the consultation, which closes in June.
Nick Starling, the ABI’s Director of General Insurance and Health, said, “By implementing in full the recommendations of Lord Justice Jackson’s review of civil litigation, the Government has addressed the injustices of our civil justice system. And motorists, who are paying an extra 10 per cent on their motor insurance as a result of high legal costs in settling personal injury claims, can look forward to cheaper insurance in the future.”
