New rules governing the handling of personal injury claims are beginning to take effect.
The average time to settle a claim should be reduced from two years to to nine months under the new rules, which came into effect at the end of April
The changes apply to claims valued between £1,000 and £10,000, which make up nearly 80%, or four fifths, of all personal injury claims.
They also state insurers must make a decision on who is liable for a road traffic accident within 15 working days of a claim being filed.
The use of standard electronic claim forms should reduce the duplication of information while legal fees have also been fixed under the changes.
Nick Starling, the Association of British Insurers's director of general insurance and health, welcomed the changes. He said: "We expect that these changes will be the start of wider ranging reforms to ensure that more claimants benefit from a simpler and speedier compensation process, and we would like to see this new process extended to cover employers' liability insurance claims."
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