The Association of British Insurers (ABI) has welcomed the Government’s extension of the limit for settling personal injury motor claims through the fast track process from £10,000 to £25,000.

According to the ABI, the move means faster compensation pay-outs for an additional 55,000 people injured in road crashes each year.

Around 97% of motor personal injury claimants will now be able to use the fast track process, which was introduced in April 2010 and involves stringent time limits for insurers and legal representatives in establishing liability, plus standardised claim forms and fixed legal costs.

The Association’s director of general insurance, Nick Starling, says: “In less than two years evidence shows that this process is leading to the average pay-out time being more than halved and lower legal costs.”

He adds: “The Government must now press on with its wide-ranging and long overdue reforms to civil litigation to ensure that steps such as reducing fixed legal costs lead to a more cost efficient compensation system.”

Ministers are proposing to introduce a similar fast-track scheme for workplace-related injury claims and public liability claims.

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