Personal injury claims in Scotland are expected to become more efficient with the introduction of a compulsory protocol.
Taking effect on November 28, the new rules for personal injury claims amounting to £25,000 will reduce costs, simplify court processes and regulate pre-litigation, according to insurance law firm DWF.
The company noted that unlike in England and Wales, no compulsory framework has ever been applied to personal injury claims in Scotland.
“The introduction of the compulsory protocol should reduce poor pre-litigation behaviours and premature litigation. Where it does not, then insurers must be wise to asking the court to impose a sanction,” said Andrew Lothian, head of general insurance in Scotland at DWF.
“While it is unlikely the compulsory protocol will reduce overall claims volumes in Scotland, it should reduce litigation rates and claimant expenses,” Lothian also said.
To take advantage of the new regime, Lothian said insurers need to understand the rules and develop systems to challenge any poor pre-litigation behaviour by claimants.
“There is a real opportunity for insurers to make use of the compulsory protocol to keep cases from litigation and make significant cost savings,” he said.
The protocol sets out steps which must be followed prior to raising proceedings. It aims to encourage fair, just and timely settlement of disputes before court proceedings are raised.
The protocol will not only stop premature trial, it will also reduce the issues for litigation in cases which aren’t settled.
Under the new rules, courts will have clear powers to penalise claimants in cost awards for premature litigation but only where insurers have adhered to the new rules.
Claimants will also need to provide a reasoned response if an offer is rejected.
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