Personal injury claim settlements take two to three years to settle in Britain and waste a substantial sum of money on legal costs, according to a report by the Association of British Insurers (ABI).

The ABI today released a report saying the personal injury claim process needs repair in Great Britain, and insurers, along with other industry associations, are calling on the government to reform the current process.

The report focuses on two areas of personal injury claims: auto injury and workers' compensation. An auto injury claim can take two years to settle, while workers' comp claims can take three years, according to the report. And for approximately every ?1 ($1.99) spent to settle a claim, 43 pence (86 cents) goes to legal costs.

A series of proposals being considered by the British government are supported by ABI and other industry associations. The reforms would:

o Require a claimant's attorney to contact insurers within five days of taking the case.

o Insurers would first investigate claims, and if there is agreement on liability, a settlement would be negotiated. Attorneys would not need to carry on their own investigation before reporting the claim.

o Insurers would have 15 days to decide liability in an auto accident and 30 days for workers' comp claims.

o Compensation would be decided on a defined scale in reaching a settlement. Where a settlement cannot be agreed upon, the case would be referred to a district judge for a decision.

"Our compensation system is failing many claimants," said Stephen Haddrill, the ABI's director general, in a statement. "It is too slow and riddled with high legal costs and undervalues rehabilitation. Insurers want to pay compensation and arrange rehabilitation faster than the current system allows.

"The government has grasped the need for reform," he continued. "We look forward to implementation of their proposals without further delay. Every day without change is another day of unnecessary delay for claimants."

Special Reports /

British Want To Cut Two- To Three-Year Wait On Injury Settlements

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