Minster Law and handl Group subsidiary Claimspace are charging ahead in the area of whiplash reforms, having revealed the results of their respective alternative dispute resolution (ADR) pilot schemes.
In partnership with tech company Nuvalaw, which has developed a claims resolution platform, Minster Law’s ADR pilot was conducted with a UK tier one insurer in March and April. Trust Mediation provided the arbitrations.
“Thirty-nine (39) claims were settled during the ADR pilot,” noted Minster Law in a release, “and all were for minor injuries following a road traffic accident, including rehabilitation. Claims were settled within an average of 2.5 working days, with the quickest settlement time being just 24 hours.”
Additionally, the lowest award stood at £2,100; the highest, at £5,167.
Minster Law chief executive Shirley Woolham stated: “The point of settlement is to allow injured people to get their lives back to normal as quickly as possible. That simply can’t happen if they have to wait over a year for their case to come to court.
“Our pilot shows that ADR delivers justice quickly, so it makes sense for customers but also for insurers and for law firms, and it means our courts can focus on more challenging issues.”
Woolham’s camp believes there is a compelling argument to accelerate the adoption of ADR for personal injury cases up to £25,000.
Separately, Claimspace’s pilot programme for minor injury claims has successfully processed more than 100 cases through to settlement, with average settlement times of 6.7 days. Also, according to the handl Group business, the average reduction in claims costs for insurers is at £550.
“In an average case, the at-fault insurer has to pay court fees, solicitors’ costs, and advocacy (barristers’) costs of around £1,700,” noted Claimspace managing Stewart McCulloch, whose ongoing pilot is in conjunction with Verisk and is participated in by two insurers and three law firms including Slater and Gordon.
“ADR removes the requirement for advocacy, which is outsourced and therefore cash neutral for law firms, of around £600,” highlighted McCulloch. “It is a no-brainer for insurers and law firms alike. As well as driving down costs, Claimspace ADR clears reserves for insurers.
“It provides a significant cash flow advantage to the claimant law firm as cases are taking less than a week to conclude compared to around 12 months for court cases. We’ve also found that it improves the customer journey, whether fault or non-fault.”
The MD added that other law firms and insurers are in the process of signing up to the programme, which commenced in January.
