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 £ AL
- Litigation £ 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 £ , if falls out still get stage 1 fees

10. The Costs Stage 1 Stage 2 Stage 3 £400 £800
£950 – infant claims – to obtain counsel’s 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:--
- Complete form on web, forward it to
(put name of your firm onto
‘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

21. Nuts and Bolts Note: Do not forget to complete a separate
Registration to access help files within
Help is at

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
No. Firms requested passwords 962
No. Insurers registered
No. Claimants with ‘live’ passwords 515
No. Claimant firms that have unlocked
Passwords

24. How is it going Cont.?
No. Claimant applications received and processed after 30/
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?