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Update on the New RTA Process by David Bott

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Update on the New RTA Process by David Bott

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    1. Update on the New RTA Process by David Bott

    2. Introduction Background Aims & Objectives of the process Costs/Part 36 Dangers/Hire How did we get here Practical Nuts and Bolts How is it going? Q & A

    3. Background Not a new argument ABI lobbying Disproportionate cost of low value claims - PCR 1450 + AL - Litigation 3500 + AL Woolf missed the chance to fix costs CFA s introduced 1999 Additional liabilities recoverable 2000 Costs Wars

    4. Aims & Objectives Three main principals Quicker Simpler Cheaper Access to justice Early notification MOJ emphasised cost reduction

    5. The Previous Process

    6. New Process

    7. Scope of The New Process From April 2010 RTA Up to 10,000 PSLA Related Special Damages Not:- Hire Repairs (but both can be included in the claim)

    8. Excluded Cases PI < 1,000 EL & PL claims MIB Untraced Driver Fatalities Cross border Claims (Only England & Wales) Claimant Bankrupt Claimant or Defendant Protected party/deceased/veh reg abroad

    9. Small Claims No change to the limit Stated Govt Policy Cases WILL start in the process For the insurer to say if the claim is worth less than 1,000 How will that work? Protocol says reasonable belief above 1000.00, if falls out still get stage 1 fees

    10. The Costs Stage 1 400 Stage 2 800 950 infant claims to obtain counsels advice Note full fee payable for pre-medical offers Stage 3 250 for a paper hearing 250 for pre hearing settlement on increased offers 500 for an oral hearing

    11. The Costs Success fees CFA & CCFA only 12.5% for Stage 1 12.5 % for Stage 2 12.5% for Stage 3 settlement 100% for Stage 3 hearing 12.5% for infant approval Success fees only payable at conclusion Stage 2 or Stage 3

    12. The Costs Slightly modified Part 36 rules Current rules will apply outside of process What behaviour will this drive? Satellite litigation? Forces Negotiation Unreasonably high offers from claimants? Insurers will have to be realistic with offers Pre-medical settlement, same costs as end of stage 2

    13. The Dangers & Exit Points Incomplete CNF Failure to admit or respond within 15 days Failure to pay the Stage 1 fee within 10 days Allegations of fraud or causation in Stage 2 Failure to respond to the claimants Stage 2 offer Dispute over interim payment > 1,000 Interim payment required for an infant

    14. Hire & Vehicle Damage Not included in the 10k calculation CNF states if solicitor is instructed to deal with hire etc Is Stage 3 settlement the end of the claim Res Judicata? Stage 3 hearing can be used to assess hire claims

    15. How Did We Get Here? MOJ published how value personal injury claims in Road Traffic Accidents Sept 09 Framework document Electronic Solution IDSL tasked in project managing portal. Jointly agreed IT partner CRIF (15 tenders, 5 shortlist) (Claimant and Defendant representatives on panel)

    16. How Did We Get Here? Rules Committee Model Office Workshops practical aspects Project Stearing Group supervision and MOJ involvement MOJ Governance after implementation Ownership

    17. Nuts and Bolts What you need to do now Decide WUI or A2A Decide if need to change your IT Decide who will do the work Decide how to train everyone Remember - What did you do when CPR came in? - What did you do when you changed IT? Portal is CPR + IT so plan/plan/plan

    18. Nuts and Bolts How to register to use the portal:- - www.rtaclaimsprocess.org.uk - Complete form on web, forward it to support@rtaclaimsprocess.org.uk (put name of your firm onto email subject box as it helps IDSL to trace them)

    19. Nuts and Bolts IDSL will:- - Give you log on details and passwords - Previously test site passwords and real passwords - IDSL will assume you just want real passwords unless you request test ones

    20. Nuts and Bolts Password:- - Comes on a Spreadsheet - You have to ring IDSL to get spreadsheet unlocked - Then you are good to go First time you login do so as administrator and use administration drop down box. Instructions with covering email

    21. Nuts and Bolts Note: Do not forget to complete a separate Registration to access help files within www.rtaclaimsprocess.org.uk Help is at helpdesk@rapidclaimsettlement.org.uk

    22. How is it going? Unrivalled Success? Disaster? Somewhere in between? (PSG Meeting 3-4 times a week)

    23. How is it going? Portal is Working! Has been a settlement already! No. Firms registered 1320 No. Firms requested passwords 962 No. Insurers registered 40-50 No. Claimants with live passwords 515 No. Claimant firms that have unlocked Passwords 396

    24. How is it going Cont.? No. Claimant applications received and processed after 30/04 211 Amount of registrations requested daily 10 All Claimant Lawyers registered 30/04 will have passwords in next few days. All major Insurance companies loaded. Time to turnaround registrations is 5 days

    25. Any Questions?

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