APIL calls for separate consultation on uninsured driver costs

APIL has called for a separate consultation on costs charged by lawyers for handling Motor Insurance Bureau (MIB) claims. Talks between the MoJ and MIB opened last week on the future of the uninsured and untraced drivers' agreements, which control the claims process.

The MoJ has proposed in a review that a revised percentage formula should be applied so the MIB could award higher costs in exceptionally complex cases and lower in low value cases.

This could involve scrapping the minimum fixed costs payable, set at £500, which the MoJ said could "substantially overcompensate the claimant for any proportionate and necessary legal advice", particularly in straightforward property damage cases.

In its response to the consultation on the review, APIL recommended that the MIB carry out a "separate consultation on the setting of suitable fees for legal expenses", in accordance with the level of complexity and value of the claim.

"Natural justice requires independent representation at the investigation and the claim preparation stage, not just advice on quantum."

APIL agreed that an independent arbitrator could be appointed to determine whether an extension of time should be allowed or whether an appeal was in time.

The association also agreed with the MoJ's proposal that claimants should be entitled to an oral hearing for all disputes, including those not related to the award.

In its summary of responses to the review, published last week, the MoJ said all respondents agreed that there should be a single dispute resolution process for MIB claims.

FOIL argued that the MIB should only have the power to award greater costs for complex cases in "exceptional circumstances".

In a statement of intent on the review, the MoJ said: "We expect that it will be a number of months before we can fully agree with MIB the details of changes that should be made. We are opening the detailed discussions on this now."

The MoJ said, that following the discussions, it would publish a full response in the autumn.

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