Ministry of Justice reforms

Are you aware of the new rules set out by the Ministry of Justice?

As your insurance advisors we want to make sure you’re aware of the new rules and protocols set out by the latest Ministry of Justice reforms and the impact these changes could have on you and your business.

Employers and Public Liability claims valued up to £25,000

A new protocol and IT Portal which manages Employers Liability (EL) and Public Liability Injury (PL) claims under £25,000 came into effect on 31st July 2013.

Some claims will not be processed via the portal, examples of which include EL disease claims where there is more than one defendant or clinical negligence.

The aim of the protocol is to reduce the overall cost of insurance claims, and ultimately drive down the cost of insurance premiums. A similar scheme has been in operation for Road Traffic Act claims for a number of years and has had a positive impact.

Did you know you will now only have one working day to respond?

A claimant’s solicitor may write to you as the policy holder or defendant to advise you that a claim is being pursued.

You will only have one working day to respond to the claimant’s solicitors with details of EL /PL insurer. If you fail to respond in time, higher legal costs may be incurred in the event of the claim being settled.

Insurer advice:

  • Ensure all of your employees have details of who your insurers are in case they are contacted by a claimant or their solicitor
  • Respond to any formal request to acknowledge receipt of a claim and confirm who your insurers are immediately

Timescales for investigation and decisions on liability

EL 30 days (currently 90 days)
PL 40 days (currently 90 days)

If your insurer can make a legal liability decision within the set time frames, they could significantly reduce the overall cost paid out on claims and help protect your claims record.

Therefore, it is important you do all you can to assist your insurer’s claim investigator who, during the course of the investigation, will be gathering evidence and documentation and collecting witness statements.

What you need to do

Fast and accurate notification is important to give your insurer as much time as possible to investigate and respond within the set timescales. In the event of a claim you are advised, where possible to:

  • Notify actual or potential claims immediately
  • Ensure information provided is accurate and complete
  • Provide all relevant documentation within the now reduced timeframe
  • Provide immediate assistance with liability investigation
  • Support quick decisions on liability