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Public backs UK personal injury reform

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About nine in 10 people think legal costs under the UK personal injury compensation scheme are too high, according to a survey commissioned by the Association of British Insurers (ABI).

On average, 50 pence (90 cents) is paid in legal fees for every £1 ($1.80) in compensation.

MPs are to debate legislation designed to simplify personal injury compensation for low-value road accidents.

Under the proposals, the small claims “track limit” will be increased to £5000 ($8966) for road accident injury claims, a tariff of fixed compensation for whiplash claims will be introduced and an online claims register set up.

Two-thirds of respondents are positive about the Government’s proposals.

About 71% would be comfortable making a claim online, rather than seeking legal representation; 37% say a simple claims process is the most important factor when making a low-value personal injury claim.

ABI Director, General Insurance Policy James Dalton says the proposed reforms will mean a fairer system for claimants, motorists and compensators.