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The Jackson debate: proposed green paper3 Feb 2011In our blog, we reported on developments in relation to the Transport Select Commitee's recent hearings on the cost of car insurance: The politics of car insurance - Well done, the lobbyists. We deduced that lobbyists were having an impact on the those witnesses selected to give evidence. Occuring alongside this has been the Ministry of Justice's consultation process around the Jackson Report recommendations that form the basis for a proposed green paper. The two are closely linked as it is these Jackson recommendations that pose the greatest threat to the personal injury claims industry - that is, the claims management companies and the injury lawyers themselves. Jackson has recently said that central to his proposed reforms is the intention "to cut out middlemen who add no value to the process," by which he aims to get rid of claims management companies, the current main conduit of new claims. Former labour MP and injury lawyer, Andrew Dismore that heads up the Access to Justice Action Group has spoken of a government "hidden agenda" given that the NHS is a major defendant in litigation and that the proposals will severely damage Access to Justice for claimants. In our view, an objective look at the proposals is consistent with Dismore's assertion, as we've argued in our Jackson Report conclusions. However, Jackson takes a different line stating: "The fact the majority of claimants will be better off under my proposals is an important feature of the package. This fact also makes it surprising that claimant representatives are so strongly opposed to the recommendations." Jackson has objected to the government tinkering with his proposals as laid out in their consultation paper, insisting that they should get rid of conditional fee agreements (CFAs) rather than modify the CFA arrangements as the government wants. There is no doubt that the government is likely to implement most of the key Jackson reforms and, in particular, this will likely lead to the demise of most claims mangement companies and a shift in the legal landscape in terms of those cases that are viable to pursue. From a car insurance perspective, personal injury claims being the biggest cost to car insurers, the Jackson proposals can be welcomed. |
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