Planned CFA reform could see most personal injury claims handled online

According to reform proposals published at the end of last month, nine out of ten personal injury claims could soon be handled online.

The planned reforms, announced by Justice Secretary Kenneth Clarke last week, are designed to tackle the compensation culture through a crackdown on the no win-no fee system of pursuing compensation claims.

The average legal costs of personal injury cases is now around 142 per cent of the actual compensation sum awarded. The aim of the reforms is to cut the costs of pursuing and defending personal injury lawsuits, in which one party alleges to have been hurt through another’s error or negligence.

The planned reforms are good news for companies and organisations who take out public liability insurance to protect against the often-astronomical costs of legal cases and lawsuits.

Mr Clarke, who is reportedly considering raising the threshold of claims people can conduct online to £50,000, said:

“An effective system of civil justice is one of the cornerstones of a civilised society. Without it, businesses couldn’t trade, individuals couldn’t protect their liberties and government couldn’t be held to account.

“But, despite this, most people dread going to court because of all the cost and anxiety it involves.”

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