MoJ's RTA proposals split the industry

The Ministry of Justice’s (MoJ’s) proposals to cut fixed fees for RTA Portal claims have divided industry opinion.

Aviva claims director Dominic Clayden said the insurer provisionally welcomed the idea. He said: “We are still reviewing the proposed figures from the consultation on fixed fees, but think it is heading in the right direction – most notably for the honest motorists and businesses who are seeing higher premiums because of the effect of legal costs.

“We will be responding to the consultation; it is critical that, in light of the ban on referral fees, the government scales back excessive legal fees. This logical step should be implemented quickly to help reduce pressure on premiums.

“We urge the government to see through the necessary reforms to deliver real, tangible benefits for the UK’s motorists. These include introducing a consultation on whiplash as well as raising the small claims track limit to £5,000 in concert with the recent ban on referral fees.”

However, APIL president Karl Tonks slammed the MoJ suggestions. He said: “We’re appalled by these proposals, which are wholly damaging to the interests of injured people.

“A fee of £1,600 for an employers’ liability case valued up to £25,000 is not at all reflective of the work involved and serves to cut independent legal advice from the system. Alternatively, injured people will have to pay for legal advice out of the compensation that they need. 

“Consultation on how the new employers’ liability and public liability systems will operate is still underway and cases have not been openly costed, so how these fees could have been fairly calculated is a mystery. The government must listen to reason if these reforms are to be in any way workable and just for injured people.”