RTA Portal extension in danger of being "too complex"

The draft protocol for the RTA Portal extension to cover employers’ and personal liability claims is in danger of becoming too complex to work, Garwyn’s chief executive Artur Niemczewski has warned.

Niemczewski said the 20-page draft pre-action protocol, which was issued by the Civil Procedure Rules Committee and is now open for consultation, was a “significant step towards a streamlined personal injury process”, but warned that the official start date of April 2013 for the extension left companies little time to prepare.

He said: “The Government has set a firm implementation deadline of April 2013 so there is very little time for businesses, insurers and their agents to adapt to what will be a fundamental change to the way EL and PL claims valued up to £25,000 are managed. However, we welcome the second stage of consultation as there is scope for improvement upon the current draft.

“We also await details of the proposed fixed costs tariffs, which will be key to the success of the new protocol.”

Garwyn regional and technical director Peter Wilson said: “Clearly, considerable time has been spent reviewing responses to the initial consultation to formulate the draft protocol. It is gratifying that some of the proposals are consistent with our submission.

“For example we welcome the recognition that EL and PL claims have distinct challenges and the acceptance that certain types of injury claim are inherently unsuitable for the process. We also welcome the emphasis placed on ensuring that the claim notification has adequate detail.”  

But he warned that the protocol’s strict 24-hour acknowledgement deadline was likely to compel insurers to impose “unprecedently” stringent notification conditions.

Wilson said the rules were also unduly complex and raised concerned that defendants will face a “minefield of deadlines which will trap the unwary and places too much reliance on process rather than expertise”.

Niemczewski said: “Every organisation with any involvement in EL and PL claims will be affected by what will be a profound shift in the process. The stated aim of the protocol is to accelerate outcomes and reduce costs. Those who invest in preparation should benefit, as they take advantage of the fixed costs that are the “carrot” of the reforms. However, those who lack the resources or get lost in the complexities risk their insurance costs escalating, particularly if claim volumes rise to test defences.

“It’s therefore vital we continue to work closely with the Ministry of Justice and the Civil Procedure Rules Committee to help achieve the necessary balance so that British businesses are not burdened with additional costs as the UK enters a critical phase in the economic cycle.  

“But whatever form the final protocol takes, it is incumbent on the defendant insurance fraternity to guide our clients through the process and limit their exposure to inflated and exaggerated claims costs.”