Proposals to reform Britain’s complex civil litigation system have received an overwhelming vote of confidence from the Association of British Insurers (ABI).

In calling for an end to the “legal costs gravy train”, the ABI says excessive legal costs associated with civil litigation claims have prevented genuine claimants from proper compensation and increased the cost of insurance.

For every £1 awarded to motor vehicle victims, an additional 87 pence is paid in legal costs.

Lord Justice Rupert Jackson’s proposals to reform civil litigation in Britain include a recommendation to end recoveries of insurance premiums on the losing side, which lawyers argue would deny access for potential claimants who don’t have sufficient money to risk losing their case.

Lord Justice Jackson has also proposed a 10% increase in general damages and greater provisions to encourage parties to make and accept reasonable offers.

ABI Director of General Insurance Nick Starling says “root and branch” reform is required to improve a compensation system “that is too slow, too complex and fails too many genuine claimants”.

“Our current system is failing not only many genuine claimants, who often have to wait too long to get the compensation they need, but all consumers who end up paying for it through higher insurance premiums,” Mr Starling said.